Cologix Completes Acquisition Of New Jersey Data Center Company Net Access
Tenth acquisition adds strategic Northeast market to network neutral North American platform.
Cologix™ has announced it has completed the previously announced acquisition of Net Access, LLC, a colocation and workspace recovery provider with over 200K gross sq ft across three enterprise-grade facilities in Northern New Jersey. The acquisition adds significant scale to Cologix’s network neutral data center platform, which now includes 24 data centers across 9 North American markets (six markets in the U.S. and three in Canada).
“Net Access has built a great business by addressing a dynamic set of health care, financial and enterprise customers with headquarters or primary U.S. offices in Northern New Jersey, as well as customers who need proximity to New York for their network and IT deployments but are looking to minimize risk and cost,” explains Grant van Rooyen, chief executive officer, Cologix. “Net Access enhances our platform by broadening our geographic reach, which provides new opportunities for our customers to grow with us. The feedback we have already received from customers interested in either New Jersey or other markets across the Cologix platform has been gratifying.”
Cologix’s expansion into Northern New Jersey complements its approach of focusing on unique, growing markets that offer alternatives to legacy data center hubs. These markets are seeing positive demand trends from Internet content moving closer to the end users and enterprises outsourcing IT deployments to colocation facilities for the first time. The three Net Access data centers are approximately 30 miles outside New York City, over 250ft above sea level and connected via a dark fiber network that extends to key carrier hotels for access to robust connectivity options.
Cologix now supports over 1,600 customers across its North American data center platform, including 700K sq ft across 24 data centers in 9 markets. Cologix now operates network neutral data centers in Columbus, Dallas, Jacksonville, Lakeland, Minneapolis, Montreal, Northern New Jersey, Toronto, and Vancouver.
Cologix increased its existing Credit Facility to $375 million to provide financing for the acquisition. TD Securities and CIT Group are joint lead arrangers and joint bookrunners for a new First Lien Term Loan with ING as syndication agent and CIT as documentation agent. Goldman Sachs Specialty Lending Group is the sole lead arranger and administrative agent for a new Second Lien Term Loan. Existing and new credit partners rounded out the remainder of the commitments. “We are pleased with the depth of our bank syndicate and their ability to support us on the successful execution of this transformative transaction,” said Brian Cox, chief financial officer, Cologix. “With the expanded credit facility we will continue to make significant strategic investments in our high growth platform.”
Net Access was a portfolio company of private equity firm Seaport Capital. Seaport Capital and Net Access have been represented in this transaction by investment bank DH Capital.