Cosentry moves into St. Louis market with Xiolink acquisition

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Posted: Tuesday, January 7, 2014 12:00 am | Updated: 11:02 am, Wed Oct 1, 2014.

Omaha-based data center services provider Cosentry is moving into the St. Louis market with the acquisition of Xiolink, St. Louis’ largest provider of managed IT infrastructure hosting services and data center colocation.

The acquisition makes Cosentry the biggest provider of IT infrastructure services in the Midwest, Cosentry CEO Brad Hokamp said Tuesday. And he anticipates moving into three or four additional markets in the next two to three years.

Terms of the deal were not disclosed. The acquisition increases Cosentry’s total employee base by about 50 to about 210. The headquarters remain in Omaha and Xiolink co-founder Mike Palmer will join Cosentry’s board of directors.

Data center merger and acquisition activity is expected to pick up this year, according to the head of the firm that provided investment advisory services to Xiolink. DH Capital CEO Peter Hopper said at an industry gathering this past fall that some data center providers are growing in scale and others are growing by adding specialties, according to an account by industry publication Data Center Knowledge.

Hokamp said Cosentry is growing on both fronts. He said the move gives Cosentry a data center presence in the St. Louis market and a “more robust” set of managed services capabilities that complement its colocation, cloud and help desk services.

“We were attracted to Xiolink because St. Louis is a critical expansion market for our business,” said Hokamp. He said all of the customers served by Xiolink are new to Cosentry but that many of the industries served are the same.

Cosentry serves midsize to enterprise-level businesses looking to outsource or complement their in-house IT capabilities. Its clients include banks, hospitals, utilities and businesses with e-commerce operations, along with transportation and construction companies.

“We’re 100 percent responsible for the IT infrastructure, so they can focus on their business applications and their company strategy,” Hokamp said.

Cosentry already operates in the Omaha, Kansas City and Sioux Falls, S.D., markets and will now have a total of eight data centers, two in each market.

Xiolink CEO Brad Pittenger said Xiolink’s customers will benefit from Cosentry’s larger network of disaster recovery services and locations.

Cosentry, headquartered at 12700 West Dodge Road, is owned by members of its management team and by Boston-based investor TA Associates.

2001: With investment from Waitt Co., Cosentry is started by Manny Quevedo and Kevin Dohrmann, former employees of InaCom, the former Omaha Fortune 500 computer dealer that began as a division of Valmont Industries but merged with VanStar of Atlanta in 2000 and later declared bankruptcy. Cosentry creates a data center in Bellevue.

2005: Cosentry, also called IPR Inc., sells its IP Revolution division to a Kansas firm, Choice Solutions. Cosentry doubles the size of its Bellevue data center and expands to the Kansas City and Sioux Falls, S.D., markets.

2008: Omaha investment firm McCarthy Capital invests in the firm. At the time, Cosentry had 95 employees.

2010: Cosentry cuts the ribbon on the $26 million Midlands Data Center in Papillion, a joint project with Alegent Health, which uses the center to store electronic medical records.

2011: Boston investment firm TA Associates buys Cosentry for an undisclosed amount from McCarthy and Waitt. The local management team continues to operate and have an ownership stake in Cosentry. The firm expands with second data centers in the Sioux Falls and Kansas City markets.

2013: Cosentry refinances its credit facilities to provide up to $100 million to enable expansion, including the expansion of the Midlands Data Center.

2014: Cosentry announces it has acquired XIOLINK, St. Louis' largest provider of managed data hosting services and data center colocation. The move expands Cosentry's staff by about 50 and adds two data centers to its assets.

Sources: Cosentry, World-Herald archives

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