EXPANDING ITS INVESTMENT BUSINESS PORTFOLIO
Global digital infrastructure firm DigitalBridge Group, Inc. has announced an agreement to acquire AMP Capital’s global infrastructure equity investment management business, which is part of its Collimate Capital subsidiary.
Valued at $328 million, this transaction includes upfront payments for the management platform, fund sponsor investments, and retained performance fees, plus potential contingent payments based on certain future performance thresholds.
This acquisition is expected to strengthen DigitalBridge’s flagship digital infrastructure equity franchise, expand its investment team which will operate as a new business unit within the DigitalBridge investment management platform, and upon closing, 2022 projected run-rate fee related earnings (FRE) from the DigitalBridge investment management platform is expected to increase at the midpoint by approximately 20% over prior guidance.
“This transaction represents a unique opportunity to extend our leadership in digital investment management,” said Marc Ganzi, Chief Executive Officer of DigitalBridge.
“In addition to accelerating and scaling the growth of our platform, we are empowering a team of high-caliber investment professionals who share our commitment to delivering strong long-term returns for investors and have significant experience investing in the value-added mid-market infrastructure segment directly adjacent to our flagship equity business. The Business will deliver immediate financial benefits and growth potential, as we aim to enhance our ability to meet and exceed our near- and medium-term business goals.”
As announced, this transaction is expected to close before the end of 2022, subject to customary regulatory approvals.
Just before this announcement, exascale data center provider Switch, Inc. disclosed that it has entered into a definitive agreement with DigitalBridge Group, Inc., under which DigitalBridge Partners II and an affiliate of IFM Investors will acquire Switch for approximately $11 billion (USD).
DigitalBridge Group also recently acquired a 24MW hyperscale data center in Santa Clara, California for $539 million. Codenamed CA22, the Santa Clara facility was set to expand the Vantage SDC (Stabilized Data Centers) platform, which is a portfolio of hyperscale data centers formed in July 2020 through a $3.5 billion partnership between a DigitalBridge-led investor group and Vantage Data Centers with a plan to establish joint footprints across North America markets.