Data center firm Cyxtera to go public via $3.4 bln deal with Starboard SPAC (updated)

Cyxtera Technologies

22/02/2021 12:05

(Adds more details from statement)
    Feb 22 (Reuters) - Private equity-backed data center
provider Cyxtera Technologies Inc said on Monday it has agreed
to go public through a merger with a blank-check firm backed by
shareholder activist Starboard Value LP, in a deal valuing the
combined entity at $3.4 billion. 
    As part of the deal with Starboard Value Acquisition Corp
 SVAC.O , Cyxtera will receive $654 million, including $250
million from private investors such as Fidelity Management &
Research Company LLC and clients of Starboard.
    Miami, Florida-based Cyxtera is a provider of co-location
services, which allows companies to keep their privately-owned
servers and networking equipment in a third-party data center,
such as ones owned by Cyxtera. 
    Cyxtera operates around 61 data centers across the globe and
counts nearly 2,300 organizations among its customers, according
to its website. The company is backed by private equity firm BC
Partners and Medina Capital.
    Starboard Value Acquisition, a special purpose acquisition
company (SPAC), is sponsored by an affiliate of Starboard Value
LP, a New York-based hedge fund led by Jeff Smith. 
    SPACs, which are shell companies that raise money through an
initial public offering to take a private company public, have
emerged as one of Wall Street's most popular investment vehicles
over the past year. 
    Cyxtera will be listed on the Nasdaq under the new ticker
symbol "CYXT" after the merger. 
    Citi was the lead financial advisor to Cyxtera. Morgan
Stanley also advised Cyxtera, while J.P. Morgan served as
financial advisor to Cyxtera and BC Partners. 

 (Reporting by Sohini Podder in Bengaluru; Editing by Shinjini
Ganguli and Uttaresh.V)
 ((sohini.podder@thomsonreuters.com;))