TierPoint Searching For $500M In Funding, Possible Sale: Report

TierPoint is searching for hundreds of millions in equity investment to expand its edge data center footprint, a source told CRN.

TierPoint is reportedly searching for hundreds of millions in investment or for a potential buyer of the data center provider for upwards of $2.4 billion.

Bloomberg, citing people familiar with the matter, said TierPoint Chairman and CEO Jerry Kent is seeking $250 million to $500 million to be used to expand its data center presence at the edge in rural parts of the country such as Nebraska and Kansas.

The sale of the company, which has more 40 data centers located across the U.S., is also a possibility, Bloomberg said.

One source familiar with the matter told CRN that Tierpoint is not looking to sell the company, but is actively seeking out capital in order to invest heavily in the edge.

[Related: Lenovo’s Everything-As-A-Service Strategy: From The Data Center To The Edge To IoT]

“The goal is not to sell the company,” said the source, who did not wish to be identified. “They have an opportunity to deploy more capital into the edge markets. As more computing functions move to the edge, they want to deploy more capital to the edge – that’s what this is all about.”

When reached, TierPoint told CRN that it does not comment on rumors or speculations.

The St. Louis-based company, which made CRN’s 2019 Data Center 50 list, provides co-location, hosting, infrastructure-as-a-Service, cloud computing, managed security and disaster recovery.

TierPoint has already onboarded advisors, according to Bloomberg. Customers of the company include the NHL and the Bill & Melinda Gates Foundation.

TierPoint recently launched its Cloud Connect Express service that provides low-latency connections from all its data centers to public cloud services. In April, TierPoint launched its newest service, Hosted Private Cloud, powered by Nutanix Enterprise Cloud software.