INCREASING NEW INVESTMENT FROM $1.2B TO $1.5B
Data center and interconnection services provider, DataBank, has announced the closing of its initial recapitalization led by Swiss Life Asset Management AG (SLAM), EDF Invest, Northleaf Capital Partners and Ardian.
This recapitalization was first announced in June with plans to sell 27% of fully diluted equity interests in DataBank from existing investors for $1.2 billion. However, new investors joined SLAM and EDF Invest, increasing the size of this initial stage to 35% equity interests that were sold for approximately $1.5 billion in cash.
“We’re excited to welcome this premier coalition of infrastructure investors to DataBank and know their vote of confidence is validation of DataBank’s strategy. We look forward to working with them to build upon our position as the leading colocation and interconnection edge platform and capitalize on a multi-gigawatt opportunity in edge computing,” said Raul K. Martynek, CEO of DataBank.
With the close of this transaction, DataBank’s new investor group joins DigitalBridge, which remains invested in the company but received cash proceeds of $318 million, up from the $230 million initially expected while reducing its ownership in DataBank to 13.4%.
“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,” said Marc Ganzi, CEO of DigitalBridge.
“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.”
As announced, subsequent stages of the recapitalization are expected to result in incremental new investors acquiring ownership interests in DataBank from existing investors prior to the anticipated completion of the recapitalization in the fourth quarter of 2022.