Houlihan Lokey Advises Cavern Technologies

Houlihan Lokey is pleased to announce that Cavern Technologies (Cavern) has been acquired by LightEdge Solutions (LightEdge), in partnership with GI Partners. The transaction closed on September 9, 2021.

Launched in 2007 and headquartered in Lenexa, Kansas, Cavern Technologies is a premier Midwestern data center provider focusing on colocation services. Its unique underground facility offers private suites, build-to-suit suites, and rack space to clients ranging from small businesses to Fortune 1000 companies. At 125 feet below earth’s surface, Cavern’s facility provides superior protection against natural and manmade disasters as well as reduced HVAC and utility expense. The company operates across 160,000 square feet of completed space adjacent to 700,000 square feet of undeveloped expansion space and integrates redundant primary power feeds with up to 50 megawatts of potential capacity.

GI Partners is a private equity firm based in San Francisco. The firm has raised over $28 billion in capital from institutional investors globally to invest in private equity, real estate, and data infrastructure strategies. The firm recently acquired LightEdge.

LightEdge is a cloud and colocation provider founded in 1996 and headquartered in Des Moines, Iowa. The company has built and expanded seven Tier III data center facilities across the U.S. Midwest and South.

GI Partners sees Cavern as the first of many add-ons to the LightEdge platform as it seeks to build a market-dominating data center provider.

Houlihan Lokey served as the financial advisor to Cavern Technologies and assisted in structuring and negotiating the transaction on behalf of the company. This deal further demonstrates Houlihan Lokey’s leading position in advising premier data center providers in the U.S.