TierPoint LLC is looking to raise $250 million to $500 million for expansion, according to a report by Gillian Tan and Scott Soshnick of Bloomberg, which cites sources who asked not to be identified.
St. Louis-based TierPoint, which has hired consultants to advise it on a deal, is “likely to draw interest from rivals as well as private equity and infrastructure investors,” according to the Bloomberg report.
The new capital would be used to grow TierPoint’s footprint of data centers, which are mainly based in mid-size U.S. cities, said Bloomberg, citing a person close to TierPoint. It has about 40 data centers and is one of the largest private companies in Missouri, with 2018 revenue of $379.9 million.
An outright sale of the company could cost upwards of $2.4 billion, the sources told Bloomberg.
TierPoint was founded in 2010 by Jerry Kent, a telecommunications entrepreneur who is also chairman and CEO of St. Louis-based Cequel III, a technology management. He is also former CEO of Suddenlink Communications, which was sold for $9.1 billion in 2015, and was CEO of Charter Communications before that.
A spokesman for TierPoint declined to comment to Bloomberg.