Oak Hill Capital Partners to Acquire ViaWest
Tuesday, April 20, 2010
Posted by: Erik Winterfeldt
Denver, Colorado – April 20, 2010 – ViaWest, Inc.
announced today that Oak Hill Capital Partners has entered into a
definitive agreement to acquire the company from its current owners, led
by Trinity Equity Investors, Goldman, Sachs & Co. and Quilvest.
Oak Hill Capital, a leading private equity firm and longstanding
investor in the data center industry, is investing in partnership with
ViaWest’s current management team, led by Chairman and CEO Roy Dimoff.
The terms of the transaction were not disclosed.
Founded in 1999 by Mr. Dimoff and Chief Operating Officer Nancy
Phillips, ViaWest is the largest privately-held, data center and managed
services company in the United States. Headquartered in Denver,
ViaWest operates 16 enterprise-class data center facilities in five
states, providing colocation and a comprehensive set of fully managed
services to mid-sized and enterprise-level businesses. The company
offers cost-effective, highly secure, interconnected data center
facilities designed to meet the needs of a wide range of business and
public sector clients. ViaWest provides these mission-critical
technology infrastructure services to more than 1,000 customers today,
and has secured additional growth capital to expand its capacity and
service offerings as part of this transaction.
"Over its 11-year history, ViaWest has evolved into a clear market
leader,” said Roy Dimoff, Chairman and CEO. "With 17 acquisitions
successfully completed, combined with a strong history of organic
growth, our management team is eager to transition into our second phase
of growth. We are extremely pleased that our new financial sponsor is
Oak Hill Capital, a partner that fully understands the industry and the
opportunity. Similar to our current investment group, Oak Hill Capital
has a long-standing history in our industry and a tremendous reputation
for successful investments based on their partnership with management.”
Bob Morse, a partner of Oak Hill Capital, said, "Explosive growth in
Internet traffic and a growing preference by all but the largest
corporations to outsource their own data centers is driving tremendous
demand for high-quality, stand-alone data center solutions. ViaWest is
ideally positioned to serve this growing demand, and we look forward to
supporting the company’s management team as they continue to build the
Sengal Selassie, founder and Managing Partner of Trinity Equity
Investors, said, "We are delighted to have partnered with ViaWest for
more than ten years. The Trinity Equity team has enjoyed working
alongside management, participating in the Company’s tremendous growth,
and helping the ViaWest management team build a leading service-focused
enterprise. ViaWest has built a tremendous reputation servicing
mid-sized and Fortune 1000 companies’ infrastructure space needs, and we
are very proud of the ViaWest franchise.”
Completion of the transaction, which is subject to regulatory
approvals and customary closing conditions, is expected in the second
quarter of 2010.
Senior debt financing is being arranged by Royal Bank of Canada, and
mezzanine financing is being provided by Barclays Structured Principal
Investing Fund L.P. and Solar Capital Ltd. RBC Daniels and Cowen and
Company acted as financial advisors to ViaWest in the transaction.
Winston & Strawn LLP is serving as legal counsel to the largest
shareholders of ViaWest. Hogan & Hartson LLP is serving as legal
counsel to ViaWest. Paul, Weiss, Rifkind, Wharton & Garrison LLP is
serving as legal counsel to Oak Hill Capital Partners.