DataBank Closes Acquisition of zColo's U.S. and U.K. Data Center Assets

Rhea-AI Summary

DataBank has successfully completed the acquisition of zColo data center assets from Zayo Group, expanding its services to 60 data centers across 28 U.S. and U.K. markets. This deal, funded by Colony Capital, totals $145 million from its balance sheet while securing $600 million in credit facilities. The acquisition enhances DataBank's edge data center strategy and improves latency for clients. With the addition of zColo, DataBank now boasts 1.1 million square feet of data center space and over 30,000 network cross connects, catering to a diverse customer base.

Positive

• Expansion to 60 data centers across 28 markets enhances service reach.
• $145 million investment from Colony Capital secures ongoing commitment.
• Increased capacity of 1.1 million square feet and 141 MW UPS capacity.
• Addition of zColo provides geographic diversity for existing customers.

Negative

• None.

DALLAS, Dec. 15, 2020 /PRNewswire/ -- DataBank, a leading provider of enterprise-class colocation, connectivity, and managed services, announced it has closed its acquisition of zColo data center assets from Zayo Group Holdings. With this transaction, DataBank now offers its secure colocation, connectivity, cloud and managed services in 60 data centers spread across 28 key markets in the U.S. and U.K.  A second closing for the five data centers in France is expected in Q1 2021. 

This announcement comes on the heels of DataBank's strategic investment in EdgePresence, which accelerates DataBank's edge data center strategy by adding modular facilities to augment its traditional data center portfolio. These unique modular data centers provide the space, power and bandwidth to further reduce latency and improve performance for key applications.

Combined, these two transactions put DataBank at the forefront of the edge infrastructure wave, enabling enterprises, hyperscalers, cloud, content and software customers to move their mission-critical workloads and platforms closer to end-user populations in second-, third-, and fourth-tier markets.

"DataBank has now assembled a unique portfolio of data center infrastructure and network interconnect options to address customer workloads anywhere from Tier 1 markets to the far edge," comments Raul K. Martynek, DataBank's CEO. "With an open interconnect architecture and virtually unlimited geographic options, we are poised to help our customers in the U.S. migrate their workloads and adapt to the next evolution of the internet: the hyper-localization of data and compute being unleashed by 5G networks."

With the closing announced today, DataBank now offers its customers access to:

• 65 data centers in 29 markets (up from 20 data centers and 9 markets)
• 1.1M raised square feet of data center space
• 141 MW of installed UPS capacity
• Over 30,000 network cross connects
• 20 major network interconnection points
• 13 cloud nodes

The addition of zColo's facilities and footprint gives DataBank's existing customers tremendous new options for geographic diversity, but it also gives zColo's base of 1500+ blue chip customers access to DataBank's deep reservoir of managed security, data protection, cloud and compliance enablement capabilities, creating a true win-win for customers.

The transaction was funded by an investor group led by Colony Capital, Inc. (NYSE: CLNY), DataBank's controlling shareholder. In addition to leading a consortium of world-class institutional investors to support the acquisition, Colony Capital invested $145 million from its balance sheet to maintain its 20% stake in DataBank.

TD Securities led the debt financing for the transaction, and along with Joint Lead Arrangers & Joint Bookrunners Société Générale and Truist Bank, provided the underwriting for the $500 million First Lien Credit Facilities and the $100 million Second Lien Credit Facility.  CoBank ACB, Regions Bank, and Natixis, New York Branch additionally acted as Joint Lead Arrangers on the First Lien Credit Facilities

For more information, please visit www.databank.com.

About DataBank

DataBank is a leading provider of enterprise-class data center, cloud, and interconnection services, offering customers 100% uptime availability of data, applications and infrastructure. DataBank's managed data center services are anchored in world-class facilities. Our customized technology solutions are designed to help customers effectively manage risk, improve their technology performance and allow them to focus on their core business objectives. DataBank is headquartered in the historic former Federal Reserve Bank Building, in downtown Dallas, TX. For additional information on DataBank locations and services, please visit www.databank.com or call 1(800) 840-7533.

About Colony Capital
Colony Capital, Inc. (NYSE: CLNY) is a leading global investment firm with a heritage of identifying and capitalizing on key secular trends in real estate. The Company manages a $47 billion portfolio of real assets on behalf of its shareholders and limited partners, including over $23 billion in digital real estate investments through Digital Colony, its digital infrastructure platform. Colony Capital, structured as a REIT, is headquartered in Los Angeles with key offices in Boca Raton, New York, and London, and has over 350 employees across 20 locations in 12 countries.

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SOURCE DataBank

FAQ

What is the significance of DataBank's recent acquisition of zColo?

DataBank's acquisition of zColo enhances its data center footprint, expanding services and improving latency for clients.

How many data centers does DataBank operate after acquiring zColo?

After acquiring zColo, DataBank operates 60 data centers across 28 markets.

What financial support did Colony Capital provide for DataBank's acquisition?

Colony Capital invested $145 million and led a consortium for additional financing, totaling $600 million in credit facilities.

When is the second closing for the data centers in France expected?

The second closing for the five data centers in France is expected in Q1 2021.

What benefits does the acquisition of zColo provide to DataBank's customers?

The acquisition offers customers improved geographic diversity and access to enhanced managed services capabilities.