Turning Rock Partners, a private investment firm based in New York, closed $70 million in expansion financing to support the merger of Hivelocity and Colohouse, a provider of colocation, cloud, bare metal, hosting and data services. Existing shareholders also participated in the new round of capital. The combined business will feature more than 40 data center locations and will be headquartered in Tampa, FL.
“Our partnership with the combined company will serve to support new initiatives at the company and product offerings,” Maggie Arvedlund, CEO and managing partner of Turning Rock, said. “The strong management team led by Colohouse CEO Jeremy Pease and his talented equity partners has built an exceptional business and continue to drive growth through both organic customer expansion and select strategic acquisitions.
“We believe the company is well positioned for growth in key markets. The deep domain expertise in execution and operation of data center, network, and bare metal assets is substantial. The expanding demand for safe and secure IT infrastructure services combined with a high degree of alignment of interests with management and continued support from a sophisticated group of existing shareholders to invest alongside TRP makes this an accretive investment.”
“Our acquisition of Hivelocity is a strategic move to enhance our capabilities and reinforce our commitment to delivering top-tier IT infrastructure services,” Jeremy Pease, CEO of Colohouse, said. “Together, Colohouse and Hivelocity create a unique, next-generation provider that places the customer’s needs and success at the forefront, providing them with the connectivity and computing power required to deploy and manage modern applications and data.”
Bill LaPerch, senior advisor of Turning Rock, will join the Colohouse board of directors.
“I’m excited to become a part of the combined company’s board and become an integral part in the future of Colohouse,” LaPerch said.
For this transaction, Turning Rock Partners was advised by Winston & Strawn. Dan Fanning of POC Quarry provided a technical engineering review. Silver Regulatory Associates provided additional services.
