INAP Sells Off Houston Colocation Business To Netrality Data Centers

Data Economy

June 5, 2020

Abigail Opiah

Netrality Data Centers will provide on-premise colocation services including space, power and connectivity at the Houston data centre.

Edge provider Internap Holding LLC has announced that it has closed the sale of its data centre facilities to an affiliate of the building’s current owner, a subsidiary of Netrality Properties, LP. The data centres are located at 1301 Fannin Street in Houston, Texas.

Through a reseller agreement with Netrality Data Centers, INAP will continue to provide network services in the building, serving existing and potential future customers, and will become a customer of Netrality Data Centers going forward with respect to its network point of presence (POP).

“We are pleased to announce the sale of our Houston colocation business to Netrality,” said Mike Sicoli, President and Chief Executive Officer of INAP.

“Our colocation customers will be in great hands, as Netrality continues to invest in the building. The sale makes good sense for us right now, as we streamline our portfolio to position ourselves for organic growth.”

Bank Street Group LLC served as exclusive financial advisor and Jenner & Block LLP served as legal counsel to INAP on this transaction and Kurtz & Revness, P.C. served as legal counsel to Netrality Data Centers.

“We are excited about the acquisition of INAP’s colocation and meet-me-room assets at 1301 Fannin,” said Gerald Marshall, Chief Executive Officer at Netrality Data Centers

“The synergies between our two ecosystems of service providers will create seamless connectivity options for our customers, enriching the interconnectivity of our Houston data centre.

“INAP’s space can accommodate higher-density requirements which nicely complements our existing colocation space and allows us to cater to a wider range of customers.”

Internap Corporation recently announced definitive steps to reduce its debt and extend maturities by filing for Chapter 11 Bankruptcy.

The company entered into a Restructuring Support Agreement with an ad hoc lender group holding approximately 77% of its outstanding term loans.