Target: Peak 10 Inc
Price: $800 million to $900 million
Sponsor: Welsh, Carson, Anderson & Stowe
Buyer: GI Partners
GI has so far prevailed in an auction for Peak 10 that attracted other private equity firms as well as Cox Enterprises Inc, the privately held media and communications conglomerate, the people told sister news service Reuters.
A deal has not yet been signed and the outcome could still change, the people added, asking not to be identified because the negotiations are confidential.
GI Partners declined to comment, as did Welsh, Carson, Anderson & Stowe, the buyout firm that currently owns Peak 10. Representatives of Peak 10 and Cox Enterprises did not respond to requests for comment.
Founded in 2000, Charlotte, North Carolina-based Peak 10 operates data centers and other IT infrastructure that allow companies to store and manage data. Its clients range from banana distributor Chiquita Brands International Inc to professional ice hockey team Florida Panthers.
Welsh, Carson, Anderson & Stowe acquired a majority stake in Peak 10 in 2010 from buyout firms that included Seaport Capital and McCarthy Capital. That deal left Peak 10 co-founder David Jones at the helm of the company as chief executive.
A deal would come after GI Partners announced in April that it had raised a $2 billion buyout fund, exceeding its $1.5 billion target. The Menlo Park, California-based firm last year sold cloud computing company SoftLayer Technologies Inc to IBM Corp for around $2 billion.
Greg Roumeliotis and Soyoung Kim are correspondents for Reuters in New York.