Cloud Service Providers Are Banding Together to Scale Out Against Gigantic Service Providers

Peak 10’s $1.7 Billion ViaWest Buy to ‘Open More Opportunities for Resellers’

Written by James Anderson

Peak 10’s purchase of ViaWest has the potential to create a nationally competitive data-center provider with expanded partner opportunities.

Peak 10 announced Tuesday that it is buying ViaWest, the data center and hybrid IT provider, for $1.68 billion. GI Partners, which acquired Peak 10 in 2014 and previously invested in ViaWest, will be the majority shareholder for the merged company. The move brings the combined company’s operational footprint to 20 markets and 4,4000 customers. Peak 10 CEO Chris Downie says the marriage will “create a leading hybrid IT infrastructure and solutions provider.”

Larry Walsh, CEO and chief analyst of the 2112 Group, says many cloud service providers are banding together in order to scale out against gigantic service providers.

“Peak 10 assuming control of ViaWest will give it greater geographic reach and service capacity, but will bring more partners and customers under its umbrella,” Walsh said. “The impact on the channel is likely minimal in the short run, as it will take time to combine these two companies; however, the merged Peak 10 and ViaWest will open more opportunities for resellers as Peak 10’s market coverage increases.”

The companies said the deal will likely close in the third quarter.

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