| NEW YORK
NEW YORK May 7 Private equity firm GI Partners
is in exclusive talks to acquire Peak 10 Inc in a deal that
could value the information technology infrastructure company at
between $800 million and $900 million, according to people
familiar with the matter.
GI has so far prevailed in an auction for Peak 10 that
attracted other private equity firms as well as Cox Enterprises
Inc, the privately held media and communications conglomerate,
the people said this week.
A deal has not yet been signed and the outcome could still
change, the people added, asking not to be identified because
the negotiations are confidential.
GI Partners declined to comment, as did Welsh, Carson,
Anderson & Stowe, the private equity firm that currently owns
Peak 10. Representatives of Peak 10 and Cox Enterprises did not
respond to requests for comment.
Founded in 2000, Charlotte, North Carolina-based Peak 10
operates data centers and other IT infrastructure that allow
companies to store and manage data. Its clients range from
banana distributor Chiquita Brands International Inc to
professional ice hockey team Florida Panthers.
Welsh, Carson, Anderson & Stowe acquired a majority stake in
Peak 10 in 2010 from buyout firms that included Seaport Capital
and McCarthy Capital. That deal left Peak 10 co-founder David
Jones at the helm of the company as chief executive.
A deal would come after GI Partners announced last month it
had raised a $2 billion buyout fund, exceeding its $1.5 billion
target. The Menlo Park, California-based firm last year sold
cloud computing company SoftLayer Technologies Inc to IBM Corp
for around $2 billion.
(Reporting by Greg Roumeliotis and Soyoung Kim in New York;
Editing by Cynthia Osterman)