DigitalBridge Group announced the completion of the first stage of its recapitalization of DataBank, a leading U.S. edge data center platform, marked by new investors joining a consortium led by Swiss Life Asset Management and EDF Invest. The transaction resulted in the sale of a 35% fully diluted equity stake in DataBank for approximately $1.5 billion in cash, exceeding the originally anticipated $1.2 billion.
As part of the transaction, DigitalBridge received $318 million in cash proceeds and reduced its ownership stake in DataBank to 13.4%. The recapitalization implies a pre-transaction net equity value of $905 million for DigitalBridge’s remaining interest, representing a 2.0x multiple of invested capital since its initial investment in December 2019.
According to DigitalBridge CEO Marc Ganzi, the creation of a permanent capital vehicle allows shareholders to maintain exposure to DataBank’s next phase of growth while unlocking capital at an attractive valuation. DataBank is currently the largest edge infrastructure operator in the U.S., with more than 65 data centers, 20 interconnection hubs, and a modular edge platform spanning over 27 markets.
Additional phases of the recapitalization [https://www.databank.com/resources/press-releases/databank-issues-715-million-in-secured-notes/] are expected to bring in further investors, with completion anticipated in the fourth quarter of 2022.
