CoreSite Realty Corporation (NYSE: COR – News), a national provider of powerful, network-rich data centers, today announced that the company has purchased Comfluent, a carrier-neutral, network-centric colocation provider, located in Denver, Colorado.
Tom Ray, CoreSite’s President and Chief Executive Officer, commented, “We are pleased to be able to expand CoreSite’s footprint into the Denver market. Comfluent has developed a blue-chip customer base and established itself as the clear leader in interconnection opportunity in Denver and the Rocky Mountain region. The acquisition is a continuation of our stated strategy to enhance our position as a network-centric provider in key domestic markets. We look forward to integrating Comfluent’s operations into our national operating and sales platform and extending our ability to serve our customers in our eighth US market. Comfluent brings to CoreSite a strong core of customers and interconnections and an excellent platform from which we will seek to expand our operations in the market.”
Comfluent plays a vital role in the interconnection community in the western U.S., serving more than 75 customers and managing the Rocky Mountain Internet eXchange (RMIX), the region’s largest Internet exchange with access to more than 25 networks. Comfluent currently leases two sites that total approximately 9,300 NRSF.
“We look forward to the opportunity to continue to grow the Denver interconnection ecosystem and provide a scalable solution for our customers as we join CoreSite, an established interconnection company that shares our commitment to excellent customer service,” said Alf Gardner, Comfluent’s President and Chief Executive Officer.
Mr. Gardner, who founded Comfluent in 1997, will remain with CoreSite after the acquisition closes as General Manager of Denver. Denver is an important and growing interconnection market and is strategically situated along communication routes from the West Coast to Chicago and Dallas.
The purchase price is approximately $3 million along with the provision for earn-out payments over the next three years if certain operating and leasing hurdles are met. The company anticipates that this acquisition will contribute approximately $0.01 to $0.02 per share in Funds from Operations in 2012.
CoreSite Realty Corporation (NYSE: COR – News) is a national provider of data center products and interconnection services. More than 700 customers such as Global 1000 enterprises, communications providers, cloud and content companies, financial firms, media and entertainment, healthcare, and government agencies choose CoreSite for the confidence that comes with customer-focused data center products, service and support systems, and scalability. CoreSite data centers are business catalysts, featuring the Any2 Internet exchange and network ecosystems, which include access to 200+ carriers and service providers and a growing mesh of more than 15,000 interconnections. The company features a diverse colocation offering from individual cabinets to custom cages and private suites, with 12 data center locations in seven major U.S. markets. For more information, visit www.CoreSite.com.
Forward Looking Statements
This earnings release and accompanying supplemental information may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “pro forma,” “estimates” or “anticipates” or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the company’s control, that may cause actual results to differ significantly from those expressed in any forward-looking statement. These risks include, without limitation: the geographic concentration of the company’s data centers in certain markets and any adverse developments in local economic conditions or the demand for data center space in these markets; fluctuations in interest rates and increased operating costs; difficulties in identifying properties to acquire and completing acquisitions; significant industry competition; the company’s failure to obtain necessary outside financing; the company’s failure to qualify or maintain our status as a REIT; financial market fluctuations; changes in real estate and zoning laws and increases in real property tax rates; and other factors affecting the real estate industry generally. All forward-looking statements reflect the company’s good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Furthermore, the company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause the company’s future results to differ materially from any forward-looking statements, see the section entitled “Risk Factors” in the company’s most recent annual report on Form 10-K, and other risks described in documents subsequently filed by the company from time to time with the Securities and Exchange Commission.