Carlyle acquiring Cedar Rapids-based Involta


Global investment firm Carlyle announced Dec. 22 that funds managed by Carlyle have agreed to acquire Involta, a Cedar Rapids-based data center company focused on hybrid IT and cloud infrastructure, including data center colocation, hybrid cloud, edge, fiber and related products.

Involta was founded in 2007, the result of a merger between Technology Resources and Cobalt Technologies. The company now owns and operates 12 data center facilities in Iowa, Ohio, Minnesota, Idaho and Arizona and an in-house 12,000+ fiber-mile network. These assets, paired with strategic infrastructure services, provide mission-critical IT solutions to businesses across the United States.

Carlyle’s capital, resources and expertise will help expand Involta’s operations, which are located primarily in the Midwest as well as the Pacific Northwest and Southwest, helping grow its capabilities for both new and existing customers, company officials said in a news release.

“Involta has built a world-class platform with a demonstrated operating model for delivering high-quality service to customers in an increasingly complex, hybrid cloud-based world,” said Joshua Pang, head of digital infrastructure for Carlyle’s Infrastructure Group. “We see significant opportunity for growth given the long-term secular demand drivers of data proliferation, digital connectivity and the digitization of enterprise and institutional operating models. We look forward to a strong, long-term partnership and to leveraging Carlyle’s scale, resources, and access to capital to drive sustainable growth at Involta.”

“We are thrilled to work with Carlyle’s proven investment team as we build on our national market leadership and support our customers’ growing digital infrastructure requirements,” said Bruce Lehrman, founder and CEO of Involta. “We see many logical opportunities to continue expanding Involta’s footprint and infrastructure, and look forward to leveraging Carlyle’s global resources and deep expertise to further accelerate our growth momentum.”

“This investment is consistent with our strategy of partnering with best-in-class businesses positioned for continued growth in the digital infrastructure space,” added Pooja Goyal, chief investment officer of Carlyle’s Infrastructure Group. “Digital infrastructure is a key sector focus for our platform and we will continue to grow our portfolio with both high growth opportunities as well as stabilized assets.”

This transaction supports Carlyle’s growth in infrastructure investing, which includes investments in infrastructure companies supporting the digital economy. Earlier this year, Carlyle acquired Wyyerd Group, a regional fiber-to-home platform in the southwestern United States, and recently completed an add-on fiber acquisition for that platform in December 2021.

Carlyle will acquire Involta from M/C Partners. The transaction is expected to close in the first quarter of 2022 and is subject to the satisfaction of customary closing conditions. Financial details were not disclosed.

Involta has been named to Inc. magazine’s Inc. 5000 list of America’s Fastest Growing Companies and the Corridor Business Journal’s fastest growing list several times. In addition, Mr. Lehrman was named the Corridor Entrepreneur of the Year in 2012 and was a finalist for Ernst & Young Entrepreneur of the Year in 2013.