New York-based Welsh, Carson, Anderson & Stowe will sell Peak 10, a Florida-based provider of cloud services and IT infrastructure, to GI Partners for $730 million.
GI Partners is a California-based private equity firm with strong ties to the technology industry.
Both firms declined to comment on the transaction.
WCAS completed its acquisition of Peak 10 in October 2010. The company operates 23 data centers in 10 metropolitan markets across 7 states within the southeastern U.S.
This is the second exit so far this year for WCAS. The company sold Solstas Lab Partners, a North Carolina-based commercial laboratory, to Quest Diagonstics in January for $570 million. Quest is a provider of diagnostic health tests like those that are commonly part of insurance or employment screenings.
WCAS is also in the market for its twelfth fund – Welsh Carson Anderson & Stowe XII – which has a target of $3 billion, according to Private Equity International’s research and analytics division. The fund will target growth investments in the information, business services and healthcare sectors.
GI Partners was in the news last week for the successful reverse takeover of Terrace Hill, by its portfolio company Urban&Civic, which relisted the company on the Main Market of the London Stock Exchange and raised £170 million. GI Partners established Urban&Civic in 2009. The company was set up to acquire strategic land sites in the UK and develop them. In April, GI Partners closed its fourth fund on the $2 billion hard cap, according to PEI data.