Tuesday, October 03, 2006

M&A Mania

Like any other industry it seems there has been a lot of mergers and acquisitions going on. Today Quality Technology Services announced that they have acquired the hosting operations of Globix. Data Center Knowledge has an excellent write up on other Quality Technology Services activities here.

Also in the news, just yesterday, Digital Realty acquired the AboveNet data centers. Again, DC Knowledge has a write up on the details here.

Once again.... "if" anyone is actually reading this blog I'm interested in what you think the next acquisition or merger will be in the colo space. I'm thinking that some of the intermediate players out there will start acquiring smaller operations in order to compete on the same level as an Equinix type of company. What do you think?

3 comments:

chuck goolsbee said...

The medium size fish are already swallowing the smaller ones. At least from what I have seen.

A small Portland, Oregon datacenter operator was recently (or is in the process of being) swallowed by a mid-sized Denver-based operator. I'm not naming names as I suspect the process is still ongoing. I know we've been looked at a few times by larger players, as have some similar sized facilities in town (Seattle).

We managed to stay alive back in the 2001-2005 "bad days" by acquiring about 8 other smaller operations.

And yes... at least one guy is reading this blog. ;)

--chuck

Webwonk said...

At least two, actually. :)

Re Portland-Denver: Sounds a lot like ViaWest and Fortix. If that's the one you're thinking of, they went public with that a couple months back:

http://tinyurl.com/g2vqk

John, thanks for the linkage, as always!

Rich

chuck goolsbee said...

Yes, ViaWest and Fortix was who I was thinking about. I heard the deal was in process a while back from an insider, but I didn't know it was public yet. Thanks.