DigitalBridge closes first stage of DataBank recapitalization

DigitalBridge Group announced the closing of the first stage of its previously announced recapitalization of its portfolio company DataBank, a leading nationwide edge data center platform.

DataBank’s portfolio consists of more than 65 data centers, 20 interconnection hubs in more than 27 markets, on-ramps to an ecosystem of cloud providers, and a modular edge data center platform.

New investors joined Swiss Life Asset Management AG and EDF Invest, increasing the size of this initial stage. As a result, 35% of the fully diluted equity interests in DataBank were sold for approximately $1.5 billion in cash, an increase from the anticipated $1.2 billion.

In connection with the completion of this initial phase of the recapitalization, DigitalBridge received cash proceeds of $318 million, up from the $230 million initially expected, and its ownership in DataBank was reduced to 13.4%. The recapitalization continues to imply a pre-transaction net equity value of DigitalBridge’s ownership of $905 million, reflecting a 2.0x multiple of invested capital (MOIC) since DigitalBridge’s first balance sheet investment in December 2019.

Marc Ganzi, CEO of DigitalBridge, said, “We are pleased to welcome Swiss Life and EDF as new DataBank shareholders, along with a number of new investors who have invested alongside of the consortium following our original announcement. The formation of this new permanent capital vehicle enables DigitalBridge shareholders to maintain exposure to the next phase of value creation at DataBank while freeing up significant capital at an attractive valuation that reflects DigitalBridge’s track record of investing successfully across the digital infrastructure ecosystem.”

www.digitalbridge.com

Swiss Life-led Consortium to acquire 27% equity Interest in DataBank

Monday, June 20, 2022  Data Centers, DataBank, Digital Bridge  

DigitalBridge Group will sell an equity stake in its DataBank company to a consortium led by Swiss Life Asset Management AG and EDF Invest.DataBank’s portfolio consists of more than 65 data centers, 20 interconnection hubs in more than 27 markets, on-ramps to an ecosystem of cloud providers, and a modular edge data center platform.Under the terms of the agreement, SLAM and EDF will acquire 27% of the fully diluted equity interests in DataBank for...

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DataBank to acquire Zayo's zColo data centers

Tuesday, September 29, 2020  Data Centers, Mergers And Acquisitions, Zayo  

DataBank agreed to acquire Zayo Group's zColo business, including 44 data centers across 23 markets in the U.S. and Europe. Financial terms were not disclosed.The deal will make DataBank one of the largest privately-held data center operators in the U.S. and a leading provider of edge colocation and connectivity solutions to hyperscale, technology, and content customers across the U.S. Zayo Group will become a significant customer and continue to...

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DataBank to acquire 4 Houston data centers from CyrusOne for $670M

Wednesday, January 19, 2022  CyrusOne, Data Centers, DataBank, Texas  

DataBank, a  provider of enterprise-class colocation, interconnection and managed cloud services,  agreed to acquire four existing data centers in the Houston, Texas metro area from CyrusOne for $670 million.The transaction positions DataBank as the largest independent data center provider in Houston, the nation’s fourth-largest metro area. The Houston facilities encompass more than 300,000 square feet of raised-floor data center capacity...

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Swiss Life-led Consortium to acquire 27% equity Interest in DataBank

DigitalBridge Group will sell an equity stake in its DataBank company to a consortium led by Swiss Life Asset Management AG and EDF Invest.

DataBank’s portfolio consists of more than 65 data centers, 20 interconnection hubs in more than 27 markets, on-ramps to an ecosystem of cloud providers, and a modular edge data center platform.

Under the terms of the agreement, SLAM and EDF will acquire 27% of the fully diluted equity interests in DataBank for approximately $1.2 billion in cash from existing investors. Upon completion of this initial phase of the recapitalization and pursuant to the transaction announced in this release, DigitalBridge’s ownership interests in DataBank will be reduced to 15.5% and DigitalBridge will receive cash proceeds of $230 million, implying a pre-transaction net value of $906 million, inclusive of retained net value of $676 million. Subsequent stages of the recapitalization are expected to result in incremental new investors acquiring ownership interests in DataBank from existing investors, including DigitalBridge, prior to the anticipated completion of the recapitalization in the fourth quarter of 2022. 

Marc Ganzi, CEO of DigitalBridge, said, “Since we acquired DataBank in 2016, we have scaled its footprint, capacity and customer base in key metro areas across the United States, transforming DataBank from a business serving three markets with six facilities to the premier edge infrastructure platform serving twenty-seven markets across more than sixty-five facilities. The formation of this new permanent capital vehicle allows DigitalBridge shareholders to maintain significant exposure to the next phase of value creation at DataBank alongside our new co-investors while also freeing up significant capital at an attractive valuation to fuel additional digital M&A.”

Mr. Ganzi added, “This transaction will catalyze the next phase of DataBank’s growth with a new group of marquee investors poised to benefit from the continued powerful infrastructure expansion at the edge and DigitalBridge’s track record and expertise investing across the digital infrastructure ecosystem.”

“This recapitalization allows us to accelerate our expansion efforts and capture the substantial secular growth in edge computing,” said Raul Martynek, DataBank’s CEO. “DataBank is strategically positioned as the leading platform to deliver and enable the network edge ecosystem as a shift from traditional centralized infrastructures continues to evolve to the edge.”

https://www.digitalbridge.com/news/2022-06-16-digitalbridge-announces-recapitalization-of-databank

DataBank to acquire 4 Houston data centers from CyrusOne for $670M

Wednesday, January 19, 2022  CyrusOne, Data Centers, DataBank, Texas  

DataBank, a  provider of enterprise-class colocation, interconnection and managed cloud services,  agreed to acquire four existing data centers in the Houston, Texas metro area from CyrusOne for $670 million.The transaction positions DataBank as the largest independent data center provider in Houston, the nation’s fourth-largest metro area. The Houston facilities encompass more than 300,000 square feet of raised-floor data center capacity...

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Zayo completes sale of US and UK data centers

Tuesday, December 15, 2020  Data Centers, Zayo  

Zayo Group Holdings completed the previously announced sale of the its zColo data center assets in the U.S. and U.K. to DataBank. A second closing for zColo’s data centers in France is expected to be completed in the first quarter of 2021.“With the close of the zColo-DataBank transaction, Zayo is able to focus 100% of its attention on its core Network business and customers,” said Steve Smith, CEO of Zayo. “Today, Zayo has an unparalleled depth and...

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DataBank to acquire 4 Houston data centers from CyrusOne for $670M

DataBank, a  provider of enterprise-class colocation, interconnection and managed cloud services,  agreed to acquire four existing data centers in the Houston, Texas metro area from CyrusOne for $670 million.

The transaction positions DataBank as the largest independent data center provider in Houston, the nation’s fourth-largest metro area. 

The Houston facilities encompass more than 300,000 square feet of raised-floor data center capacity and 42.5 MW of installed critical IT load, as well as a roster of blue-chip customers from the area’s fast-growing healthcare, financial, energy, media and software sectors. Additionally, one of the facilities being acquired – the Houston West Campus – is the region’s primary interconnection point, with over 30 fiber networks, 3,500 cross connects and public cloud on-ramps from AWS and Google. 

“We are excited to add the high-growth Houston market to DataBank’s portfolio, marking a significant milestone in our expansion efforts as we enter into our 27th metro area and add to what is already the largest edge infrastructure footprint in the United States,” said Raul Martynek, DataBank’s CEO. “We look forward to providing the businesses and people in this important community with best-in-class digital infrastructure.”

The transaction is being funded by an investor group led by DigitalBridge, DataBank’s controlling shareholder. In addition to leading a consortium of world-class institutional investors to support the acquisition, DigitalBridge is investing $80 million from its balance sheet to maintain its 20% ownership position in DataBank.

Marc Ganzi, President and CEO of DigitalBridge, said, “With this acquisition, DataBank is extending its footprint in a strong growth market with significant expansion potential, continuing its strategic focus on carrier-rich data centers in critical metro areas across the United States. We are pleased to support Raul and his team as they continue to deliver for an expanding Fortune 500 customer base.”

Following the close of the transaction, DataBank’s total portfolio will feature more than 65 facilities and 2.0 million square feet of raised-floor data center capacity.

https://www.databank.com

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