Brookfield Infrastructure Partners and DigitalBridge Group are in fierce competition to acquire Compass Datacenters for a sum exceeding $5.5 billion, which includes debt. Both Brookfield and DigitalBridge are leading rival bidding consortia in the private auction for Compass.
Compass’ existing debt arrangement allows for a smooth transition to a new owner without the need for refinancing. This advantageous condition facilitates the completion of the deal, particularly in a time of scarce and costly debt due to high interest rates and market volatility, making it more challenging for leveraged buyouts.
Compass Datacenters, headquartered in Dallas, Texas, specializes in providing tailored data centers for businesses. Currently, it is owned by RedBird Capital Partners, Ontario Teachers’ Pension Plan, and the Azrieli Group.
With $161 billion in assets under management, Brookfield Infrastructure operates across various sectors such as transportation, data centers, utilities, and midstream. The company’s portfolio includes 50 data centers, as stated on its website. In a recent transaction, Brookfield acquired a majority stake in Data4, valuing the data center operator at approximately 3.5 billion euros ($3.8 billion), including debt. Furthermore, Brookfield Infrastructure purchased Triton International, a freight container lessor, for approximately $4.7 billion.
DigitalBridge, headquartered in Boca Raton, Florida, is an investment firm specializing in digital infrastructure. The company manages an impressive portfolio of nearly $69 billion in assets.