Private equity giants launch Century Link’s former $2.6bn data centre operations as standalone business
New operations unit also includes the assets from a $200m M&A of Medina Capital’s security and data analytics portfolio.
BC Partners and Medina Capital have officially closed the acquisitions of CenturyLink’s portfolio of data centres and associated colocation business and of Medina Capital’s security and data analytics portfolio.
With more than 2.6 million sqf of colocation space and nearly 195 MW of power, CenturyLink’s portfolio of 57 properties was one of the largest to come to market in recent years.
The new data centre business has been branded as Cyxtera Technologies and results from the $2.6bn acquisition of CenturyLink’s assets announced in November 2016 and a $200m acquisition of Medina Capital’s security and data analytics portfolio, including Cryptzone, Catbird, Easy Solutions, and Brainspace.
Cyxtera, which operations started officially today, serves more than 3,500 customers around the world.
CenturyLink is to continue to offer colocation services as part of its hybrid IT offerings through its commercial relationships with Cyxtera, similar to Verizon’s agreement with Equinix.
Manuel D. Medina, founder and managing partner of Medina Capital, and founder and former CEO of Terremark Worldwide, has been named CEO of Cyxtera.
He is joined by his team from Medina Capital, including members of the former senior leadership team of Terremark, a provider of data centre, cybersecurity and infrastructure services that was acquired by Verizon in 2011 in a $2bn transaction.
Cyxtera’s executive team will also include memebers from the five acquired businesses and a roster of veterans from the enterprise infrastructure and cybersecurity sectors.
The company is to have 1,100 staff across the globe, of which 700 have transitioned from CenturyLink.
Medina said: “The last two decades have brought seismic changes to enterprise IT availability, agility and scalability, and the next era must be underpinned by a similar revolution in infrastructure security.
“I am proud and excited to be working with an all-star team of seasoned professionals with proven success in the fields of IT infrastructure and cybersecurity as we launch a new global platform to help realize this vision, to help our customers operate and secure their critical applications and business systems. I’m delighted to welcome our team, our customers and our partners to Cyxtera.”
Justin Bateman, managing partner for BC Partners, said: “As the complexity of the IT environment grows and threats to its security continue to multiply, it is more important than ever before that institutions – both in the public and private sectors – integrate security into their core infrastructure strategy.
“Cyxtera is the first company to provide that integrated solution to customers around the world.”
Glen F. Post III, chief executive officer and president of CenturyLink, said: “This sale allows CenturyLink to drive greater focus on our network infrastructure while still having the ability to sell colocation services in these data centres.”