Information on the Target

Perimeter Technology, LLC (Perimeter), based in Oklahoma City, is a premier provider of data center colocation and managed hosting services in the region. With operational facilities located in both Oklahoma City and Tulsa, Perimeter has established itself as a leader in delivering reliable and efficient data solutions.

The acquisition positions Perimeter as a significant component of Cequel Data Centers, LLC (Cequel), enhancing its capabilities in serving clients across Texas and Oklahoma. This strategic move consolidates expertise and resources to meet the growing demand for data center services.

Industry Overview in Oklahoma

The data center industry in Oklahoma has been experiencing significant growth, driven by the increasing reliance on digital infrastructure and cloud services. As businesses increasingly adopt technology-driven solutions, the demand for reliable colocation and hosting services has surged, making Oklahoma an attractive market for data center operators.

In recent years, the state has seen substantial investments in IT infrastructure, leading to advancements in connectivity and data security. These developments have established Oklahoma as a viable location for data centers, with its access to reliable power sources and relatively low operational costs compared to other regions.

Moreover, the state government’s efforts to promote technological innovation and economic development have further strengthened the data center industry. With incentives and support for technological enterprises, Oklahoma is poised to become a key player in the national data service market.

Due to these favorable conditions, the data center market is expected to continue expanding, attracting additional investment and competition. Leading firms are increasingly recognizing the potential for growth in Oklahoma, resulting in a robust landscape for data center services.

The Rationale Behind the Deal

This acquisition is part of a strategic initiative to expand Cequel's data center platform, emphasizing the company’s commitment to growth through both organic and acquisition-driven strategies. By integrating Perimeter's rich service offerings into Cequel, the combined entity gains enhanced operational capabilities and a broader market presence.

The partnership aims to leverage the strengths of Perimeter and Colo4, transforming them into a unified regional powerhouse in the data center sector. With a larger footprint and enhanced resources, the new entity is well-positioned to capture a larger share of the growing demand for data services in Texas and Oklahoma.

Information About the Investor

Thompson Street Capital Partners (TSCP) is a well-regarded private equity firm that specializes in investing in high-growth companies across various sectors. With a strategy focused on leveraging partnerships and operational improvements, TSCP has a proven track record of driving significant value through its investments.

Charterhouse Group, Inc., another key player in this deal, has nearly four decades of experience in private equity and a strong track record of supporting middle-market companies. Their initiatives aim at fostering growth through collaborative investment strategies, particularly in the data center and business services industries.

View of Dealert

The acquisition of Perimeter Technology by TSCP and Charterhouse, in partnership with Cequel III, presents a compelling investment opportunity. The strategic alignment of these entities is likely to bolster their competitive advantage in the data center marketplace, particularly within the growing Oklahoma region.

Despite the initial investments, the rationale for the acquisition suggests a solid potential for return on investment. With the data center demand in Oklahoma projected to increase, the combined capabilities of Cequel, Colo4, and Perimeter position them to effectively capitalize on emerging market opportunities.

Additionally, the involvement of seasoned players like TSCP and Charterhouse lends security to the investment, given their extensive experience in scaling businesses and executing successful buy-and-build strategies. Their collaborative efforts are expected to yield a strong operational synergy.

In conclusion, this acquisition appears to represent a strategic move that could generate long-term growth and profitability in a rapidly evolving industry. By expanding their footprint and enhancing service offerings, the new entity is poised to thrive in the competitive landscape of data center services.

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