Contact: Ben Kolada
Dallas-based DataBank has expanded beyond its Texan roots, acquiring Minneapolis-based VeriSpace. The deal is part of a growth strategy aimed at entering new markets in part through M&A. With VeriSpace, DataBank now operates eight datacenters with more than 180,000 square feet of datacenter space. DataBank was acquired by Avista Capital Partners in June 2011.
VeriSpace provides server colocation, managed hosting and disaster recovery services to enterprises. The company operates a 10,000-square-foot facility in Minneapolis suburb Eden Prairie. VeriSpace was founded in 2002 by Minnesota commercial real estate developer Dave Frauenshuh, and sits in a commercial office complex located about 12 miles south of downtown Minneapolis.
The greater Minneapolis-St. Paul metro area has seen a little bit of moving and shaking in the past few years. In May last year, Cologix picked up Minnesota Gateway and in March 2010, TDS bought VISI for $18m. In Minneapolis, competitors in the colocation market include XO Communications, VISI, Atomic Data, Cologix and Implex. Competition in the interconnection services area will most likely come from SunGard, Velocity Telephone and zColo.
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