Databank Announces Major Recapitalization

Rhea-AI Summary

DataBank has announced a significant recapitalization, led by Swiss Life Asset Management AG and EDF Invest, acquiring a 27% interest in the company for $1.2 billion. This move positions DataBank to capture growing demand in edge infrastructure over the next decade. With a network of over 65 data centers across 27 U.S. markets, the company aims to expand further as edge computing demand surges. The transaction is expected to close in the third quarter of 2022, subject to regulatory approvals.

Positive

• New investor consortium acquiring 27% for $1.2 billion boosts capital.
• Strategic positioning to capture edge infrastructure demand.
• Expansion of existing data center footprint supports growth.

Negative

• None.

New Investor Consortium to Acquire 27% Interest in DataBank Positioning it to Capture Edge Infrastructure Demand Over the Next Decade

DALLAS, June 17, 2022 /PRNewswire/ -- DataBank, a leading provider of enterprise-class colocation, interconnection, and managed services, today announced a recapitalization led by long-term institutional investors Swiss Life Asset Management AG ("SLAM"), EDF Invest ("EDF") and current DataBank investor DigitalBridge. The initial stage of the recapitalization is being structured as a sale of ownership interests with SLAM and EDF acquiring 27% of the fully diluted equity interests in DataBank from existing investors for $1.2 billion.

The transaction will enable DataBank to execute a 10-year plan that capitalizes on edge infrastructure growth in the U.S. Since 2016, DataBank has been progressively building an ecosystem of interconnect and data center locations in over two dozen Tier 1 and Tier 2 U.S. metros that it believed would serve as the geographic foundation of a more decentralized, next-generation Internet infrastructure platform. Today, with over 65 data center assets in 27+ markets, DataBank has more data centers in more U.S. metros than any other data center provider in the US, public or private.

"This recapitalization allows us to accelerate our expansion efforts and capture the substantial secular growth in edge computing which we believe will be at multi-gigawatt opportunity," said Raul K. Martynek, DataBank's CEO. "DataBank is strategically positioned as the leading platform to deliver geographically distributed colocation and interconnect edge solutions, as the shift from traditional centralized infrastructures continues to evolve to the edge."

Marc Ganzi, CEO of DigitalBridge, said, "Since we led the acquisition of DataBank in 2016, we have scaled DataBank's footprint, capacity and customer base in key metro areas across the United States, transforming DataBank from a business serving three markets with six facilities to the premier domestic edge infrastructure platform serving twenty-seven markets across more than sixty-five facilities. This transaction will catalyze the next phase of DataBank's growth with a new group of marquis investors poised to benefit from the continued powerful infrastructure expansion at the edge and DigitalBridge's track record and expertise investing across the digital infrastructure ecosystem."

The recapitalization is also expected to result in additional new investors acquiring ownership interests in DataBank prior to the recapitalization's expected completion in the third quarter of 2022, subject to customary closing conditions and receipt of required regulatory approvals.

"This new investor group will provide the financial backing required to continue to scale DataBank's leading edge infrastructure platform," said Kevin Ooley, DataBank's President and CFO. "Swiss Life and EDF's long term outlook on the sector, perfectly aligns with our view on the significant opportunity around edge demand."

DataBank was advised by Goldman Sachs as financial advisor and Proskauer Rose LLP as legal advisors.

About DataBank

DataBank enables the world's largest enterprises, technology, and content providers to consistently deploy and manage their infrastructure, applications and data on the right platform, at the right time, in the right place. Our colocation and edge infrastructure footprint consists of 65+ data centers and 20 interconnection hubs in 27+ markets, on-ramps to an ecosystem of cloud providers, and a modular edge data center platform with virtually unlimited reach. We combine these platforms with contract portability, managed security, compliance enablement, hands-on support, and a guarantee of 100% uptime availability, to give our customers absolute confidence in their IT infrastructure and the power to create a limitless digital future for their business. To learn more or tour a facility, visit databank.com or call 1(800) 840-7533

For DataBank media inquiries, please contact: JSA +1.866.695.3629 ext. 13 JSA_DataBank@jsa.net

About Swiss Life Asset Management AG

Swiss Life AM has more than 160 years of experience in managing capital on behalf of the Swiss Life Group and its clients. The investment philosophy of Swiss Life AM focuses on principles of long-term strategic approach, capital preservation, generation of consistent and sustainable returns as well as a responsible approach to risks. Swiss Life AM offers its asset management expertise to third-party clients in Switzerland, France, Germany, Luxembourg and the UK. As at 31 December 2021, assets managed by Swiss Life on behalf of third-party clients amounted to €99 billion. Together with the investment mandates for the Swiss Life Group, total assets under management by Swiss Life AM stood at €266 billion, of which €7.3bn is managed by the Infrastructure Equity Business area. Swiss Life AM has a dedicated infrastructure team of more than 42 investment professionals, focusing on investments in global infrastructure assets including renewables and a proven track record in creating value for its clients.

About EDF Invest

EDF Invest is the investment arm of EDF for non-listed Dedicated Assets. Dedicated Assets will fund the decommissioning of EDF's power plants in France. EDF Invest currently manages around €9bn of equity and is targeting around €12 billion in the next few years. Our mission is to diversify EDF's portfolio of Dedicated Assets and lengthen its investment horizon by targeting three non-listed asset classes in France and abroad: Infrastructure, Real Estate and Funds. Follow EDF Invest on: www.edfinvest.com / and www.linkedin.com/company/edf-invest

About DigitalBridge

DigitalBridge (NYSE: DBRG) is a leading global digital infrastructure investment firm. With a heritage of over 25 years investing in and operating businesses across the digital ecosystem including cell towers, data centers, fiber, small cells, and edge infrastructure, the DigitalBridge team manages a $47 billion portfolio of digital infrastructure assets on behalf of its limited partners and shareholders. Headquartered in Boca Raton, DigitalBridge has key offices in New York, Los Angeles, London, and Singapore. For more information visit www.digitalbridge.com.

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SOURCE DataBank

FAQ

What is the significance of DataBank's recapitalization on June 17, 2022?

DataBank's recapitalization allows it to secure financial backing to expand its edge infrastructure capabilities, essential for meeting increasing market demand.

Who are the new investors acquiring a stake in DataBank?

Swiss Life Asset Management AG and EDF Invest are the new investors, acquiring a 27% ownership for $1.2 billion.

How many data centers does DataBank operate after its expansion?

DataBank operates over 65 data centers across 27 major U.S. markets.

When is the recapitalization of DataBank expected to close?

The recapitalization is expected to close in the third quarter of 2022, pending regulatory approvals.

What market opportunity does DataBank aim to capitalize on?

DataBank aims to capitalize on the growing demand for edge computing infrastructure in the U.S.