A $420 MILLION TRANSACTION
Data center provider Switch Inc., has just announced its fifth data center campus in Texas upon signing a definitive agreement to acquire Data Foundry, Inc. for $420 million in an all cash transaction.
Data Foundry is a carrier-neutral colocation provider headquartered in Austin, Texas, having four multi-tenant data centers in Austin and Houston with over 400 customers on board. The Austin campus includes three current data center facilities with expansion capabilities to reach 44MW at full build.
The Houston campus which has one existing data center was expanded in 2019 and has the ability to support 18MW of customer load capacity at full build.
“We are extremely pleased to reach an agreement with Data Foundry and to announce the launch of our Fifth Prime Data Center Campus in Texas,” said Rob Roy, Founder and CEO of Switch, Inc.
“The Data Foundry acquisition extends Switch’s national reach and enhances our ability to serve Texas and the Central U.S. region with low latency connectivity, while also providing critical geographic and revenue diversification with robust expansion potential to accelerate long-term growth and value creation.”
Through this acquisition, Switch portfolio will expand to 16 operational data centers across six locations and Data Foundry facility will anchor Switch’s fifth data center campus. Switch also intends to commence development on new data centers in both Austin and Houston at the end of 2021, with the first phases scheduled to be available for customer deployments in 2023.
“Data Foundry is proud to partner with Rob Roy and the Switch team in this transaction that we believe will carry forward our company’s rich history of innovation in Texas, and will result in tremendous long-term benefits to our customers and all stakeholders of the combined business,” said Carolyn and Ron Yokubaitis, Co-Founders of Data Foundry.
The acquisition is expected to close by mid-2021, subject to the satisfaction of customary closing conditions, including regulatory approval. Switch was advised by Wells Fargo Securities, LLC and Latham & Watkins LLP on the transaction. Data Foundry was advised by DH Capital, LLC and Vinson & Elkins LLP.