Denver-based ViaWest Internet Services Inc. has reached agreement with Center 7 Inc. to buy certain hosting and co-location assets at Center 7's Lindon-based data center in exchange for an equity position and board seat at ViaWest.
Terms of the transaction were not disclosed.
ViaWest provides managed hosting, co-location and broadband access.
"ViaWest is currently the dominant service provider in the Colorado market, and we were looking for a transaction that would significantly increase our presence in the Utah market," said ViaWest CEO and chairman Roy Dimoff.
"We have been operating in Utah since late 1999, and our current facility in Salt Lake City is at 90 percent capacity. We needed a Class A data center with a proven operating history, and Center 7 absolutely filled the bill."
The Lindon location is a network operations center that supports about $2 million in annual hosting and co-location revenue. The data center is expandable to 15,000 square feet. ViaWest said it will gradually increase its capacity in the data center over a five-year period and will lease office space from the Canopy Group out of its business park facility in Lindon.
Center 7, a developer and provider of information technology infrastructure management and authentication products, was formed in 1999, primarily financed by the Canopy Group.