Cologix Acquires Net Access, Aims To Boost Channel Program

Data center services provider Cologix has acquired a New Jersey-based company it hopes will improve its channel program in a region of the United States – about 30 miles west of New York City - where more partners are seeing demand.

Cologix stands to gain about 280,000 square feet of data center space for its co-location services in the deal to buy Net Access, of Cedar Knolls, N.J. It will also increase its client base by about 26 percent, to more than 1,600.

Financial details of the acquisition were not released. But Cologix said it expanded its credit line to $375 million to provide financing for the deal.

[Related: Cologix Ramps Up Its Channel Push With Arrow Electronics Partnership]

Through this acquisition, which closed Thursday, Cologix will gain three data centers in northern New Jersey, adding to the 21 the company already owns. But the three facilities will boost its data center space 40 percent, from 500,000 to 700,000 square feet. This acquisition marks Cologix's 10th in its five-year history and is its largest acquisition.

The Denver-based vendor has locations in cities across North America, including Columbus, Ohio; Minneapolis; Montreal; Toronto; Vancouver and Jacksonville, Fla. Williams said Cologix is a natural fit for partners doing business in those areas.

"There is not another data center platform that can offer access to multiple markets in the markets we are in," he said. "So, for [channel partners] who are being asked to fulfil needs in those markets, we are the natural group for them to come to."

As Cologix absorbs the acquisition, Williams said both companies’ channel programs will also merge, combining the best of both programs to better serve their combined 150 partners.

"We have had a channel program for a long time," he said, "and Net Access has had a very rapidly growing program over the last two or three years, and so we are bringing the best from both programs together…. I think we have learned from the success of the Net Access program.’

"Our perspective now is to continue to invest in our channel program," he said. "With the addition of net access, we have the knowledge of some of the mechanics that will make our program more profitable for the partner community."

Cologix's newly acquired data centers are only 30 miles west of New York and are accessible from the city. He said they provide customers with an alternative to more expensive co-location options in New York, and aside from being cheaper, he said the data centers are also safer than the alternatives in the city because they sit more than 250 feet above sea level and provide better protection from natural disasters like

Williams said he’s excited about the acquisition because of Net Access' location. He said Cologix has been pleasantly surprised by the dynamic marketplace in northern New Jersey and the opportunities as more firms from New York look outside the city for co-location services.

However, as the data center space continues to consolidate, Williams said he expects Cologix will continue to make acquisitions and focus on growing its business.

"I don’t have the best lens into the future," he said, "but, I think the best lens to the future is the recent past."

PUBLISHED NOV. 19. 2015