Fast-growing Dallas colocation specialist Dataside is in talks to be acquired, according to a report in the Dallas Business Journal (summary only). Dataside President and CEO Jim deVenny confirmed that the company is in negotiations with potential suitors, but didn’t name the potential acquirer(s). The report said the deal price may be in the $100 million range.
“There has been a great deal of activity and interest in Dataside,” deVenny said. “We are in serious discussions with some people as we speak.” Dataside is working with Houlihan Lokey Howard & Zukin, a large investment bank with a Dallas office.
In October Dataside announced $24.5 million in debt financing from Drawbridge Special Opportunities Fund LLC. Drawbridge is managed by the private equity firm Fortress Investment Group, which would be one possible acquirer. Other private equity firms who have made industry acquisitions in Texas include GI Partners (The Planet, EV1Servers) and ABRY Partners (CyrusOne).
Dataside recently announced plans to build a new data center, which will be the company’s seventh overall and fifth in the Dallas metro market. The company also has data centers in Austin and Las Vegas, but has focused its recent growth in its home market, building into expansion space within the Infomart carrier hotel at 1950 Stemmons.