Saturday, October 1, 2022

Digital Infra Acqusitions by Private Equity Grow

Synergy Research Group says 87 data center mergers or acquisitions happened in the first six months of 2022,  with an aggregate value of $24 billion. 


Some $18 billion of deals are pending. 


Synergy logged 209 deals that closed in 2021 with an aggregate value of over $48 billion.  A notable trend in the industry has been the recent influx of private funds.


From 2015 to 2018, private equity buyers accounted for 42 percent of deal value. In 2019 to 2021, private equity share of the total deal value increased to 65 percent, while in the first half of 2022 private equity share has jumped to over 90 percent, Synergy Research notes. DC MandA June 2022

source: Synergy Research 


Dealmaking has been led by a few big transactions, including the $15 billion acquisition of CyrusOne by investment firms KKR and Global Investment Partners, and the pending acquisition of Switch by DigitalBridge for $11 billion. In 2021 the acquisitions of CoreSite and QTS, each for around $10 billion, were the big transactions. 


Prior to these four transactions, the biggest data center deals were Digital Realty’s $8.4 billion acquisition of Interxion, Digital Realty’s $7.6 billion acquisition of DuPont Fabros, the Equinix acquisition of Telecity for $3.8 billion, the Equinix acquisition of Verizon’s data centers for $3.6 billion and the acquisition of Global Switch by the Jiangsu Shagang Group of China.


Apart from these mega deals, some of the most notable serial acquirers have been Equinix, Digital Realty, EQT, DigitalBridge/Vantage, CyrusOne, GDS, GI Partners, Keppel, Macquarie, Mapletree and NTT, Synergy says. 


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