Wheelings & Dealings: TierPoint Acquires Windstream's Data Center Business for $575 Million

Windstream Communications has shifted gears and will now focus its growth and development efforts on its core telecom solutions. The company announced it has sold off its data center business to cloud, colocation and MSP TierPoint for $575 million.

The cash deal will enable Windstream to focus capital and resources on its telecom offerings, although the company will still offer traditional data center services to its enterprise customers using a broader footprint. As part of the deal, the companies entered into a reciprocal partnership that enables them to sell products and services to each other’s customers and prospects via referrals.

"Data center services will remain an integral component of our enterprise service offering," said Tony Thomas, president and CEO of Windstream. "We expect the divested data center business to continue its significant growth under the leadership of TierPoint, and we look forward to partnering closely with them to provide advanced data center services to our enterprise customers."

"Windstream Hosted Solutions and its employees have earned a reputation for providing excellent customer service and innovative enterprise-class solutions,” added Jerry Kent, chairman and CEO for TierPoint. “We value these team members as a key asset in the acquisition and their expertise adds to our strength and focus on providing a superior level of customer care. We're also very pleased to enter into a long-term strategic partnership with Windstream, allowing both companies to leverage the expertise and respective strengths of our organizations."

TierPoint has been focused on expansion this year, and in July the company acquired Florida-based CxP Data Centers. The move added 65,000 square feet of data center space in a hurricane-resistant and ballistic hardened facility, within hundreds of yards of Florida’s main fiber-optic lines. In June TierPoint completed an expansion of its facility in Valley Forge, PA, increasing available space to 125,000 square feet.