Brookfield, DigitalBridge in $5.5 bln-plus bidding war for Compass Datacenters-sources

Brookfield Infrastructure Partners LP

31/05/2023 21:17

By Milana Vinn and Anirban Sen
       May 31 (Reuters) - Brookfield Infrastructure Partners LP
 BIP.N  and DigitalBridge Group Inc  DBRG.N  are battling it out
in the race to acquire Compass Datacenters LLC for more than
$5.5 billion, including debt, according to people familiar with
the matter.
    Brookfield and DigitalBridge are leading opposing bidding
consortia in the auction for privately held DigitalBridge, the
sources said, adding an outcome is expected by next month. 
    The terms of Compass' debt allow for it to be taken over by
a new owner without it being refinanced, one of the sources
said. This is making the deal easier to complete at a time when
high interest rates and market volatility have made debt for
leveraged buyouts scarcer and more expensive. 
    The sources requested anonymity because the matter is
confidential. The Deal reported in February that Compass
Datacenters was exploring a sale.
    Compass Datacenters, Brookfield Infrastructure Partners and
DigitalBridge declined to comment.
    Dealmaking in the data center sector has spiked in recent
years as the rapid growth of the sector, fueled by cloud
computing, has attracted large infrastructure investors, and the
fragmented nature of the industry has driven consolidation. 
    Dallas, Texas-based Compass Datacenters provides customized
data centers for companies. It is owned by RedBird Capital
Partners, Ontario Teachers’ Pension Plan, and the Azrieli Group.
    Brookfield Infrastructure manages $161 billion of assets
across sectors including transportation, data centers,
utilities, and midstream. Its current portfolio includes 50 data
centers, according to its website. 
    In April, Brookfield snapped up a majority stake in Data4 in
a deal that valued the data center operator at close to 3.5
billion euros ($3.8 billion) including debt, Reuters reported. 
    During the same month, Brookfield Infrastructure also
acquired freight container lessor Triton International Ltd
 TRTN.N  for about $4.7 billion. 
    Boca Raton, Florida-based DigitalBridge is a digital
infrastructure investment firm, which manages nearly $69 billion
in assets.

 (Reporting by Milana Vinn and Anirban Sen in New York; Editing
by Daniel Wallis)
 ((Milana.Vinn@thomsonreuters.com; Twitter: @MilanaVinn; Reuters
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