EQT Is in Talks to Buy Data-Center Firm EdgeConneX for $2.5 Billion
EQT Is in Talks to Buy Data-Center Firm EdgeConneX for $2.5 Billion
(Bloomberg) -- EQT AB, the Nordic buyout firm, is talks to buy data-center company EdgeConneX, according to people familiar with the matter.
EQT is discussing buying the Herndon, Virginia-based company from investors including Providence Equity Partners in a deal worth at least $2.5 billion, said one of the people, who asked to not be identified because the matter isn’t public.
No decision has been finalized and talks could fall through, the people said.
Representatives for EQT and Providence Equity declined to comment. A representative for EdgeConneX didn’t immediately respond to a request for comment.
The talks come amid a steady stream of dealmaking for data centers, which are benefiting as companies around the world increasingly rely on third parties to manage their data. Equinix Inc. agreed this month to buy Mexican telecom firm Axtel SAB’s data centers.
CyrusOne Inc., another data-center company exploring a sale, has drawn interest from a bidder group including KKR & Co., Stonepeak Infrastructure Partners and I Squared Capital, Bloomberg News reported in August.
Founded in 2009, EdgeConneX has built more than 40 data centers in North America, Europe and South America, according to its website. Providence Equity acquired a stake in the company in 2016, according to data compiled by Bloomberg.
EQT, founded in 1994, has 40 billion euros ($44 billion) in assets under management, according to its website. It went public last month.
--With assistance from Kiel Porter and Nabila Ahmed.
To contact the reporter on this story: Gillian Tan in New York at gtan129@bloomberg.net
To contact the editors responsible for this story: Liana Baker at lbaker75@bloomberg.net, Matthew Monks, Michael Hytha
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