Investment firm EQT is still pursuing its interest in buying data center operator Global Switch.

Citing people familiar with the matter, Bloomberg reports EQT AB has resumed its efforts to acquire Global Switch in a deal that could value the data center company at around $6.5 billion.

Global Switch London.jpg
– Dan Swinhoe

The private equity firm is in discussions with Global Switch’s Chinese owners about a potential deal; an agreement could be reached in the coming months depending on the outcome of the due diligence.

Founded in 1998, London-based Global Switch operates 13 facilities across Europe, Australia, and Asia, with another in development in London, UK. Chinese steel giant Jiangsu Shagang Group took control of the data center company over a three-year period beginning in 2016.

The company has been flirting with a sale for nearly two years, first talking to potential acquirers back in January 2021 for a potential $10-11 billion sale.

More than a dozen firms were linked as potential buyers. Investment firms EQT, KKR, and PAG were reportedly shortlisted for a final round of bidding last year, but talks were said to have ‘ground to a halt’ in January 2023 over a gap in company valuations.

Despite this, EQT was said to be still interested in exploring a deal as recently as March.

In August reports surfaced that Global Switch was considering selling its Europe and Asia Pacific operations to separate buyers with the hope of valuing each at around $3 billion.

Gaw Capital Partners, Stonepeak, Blackstone, Brookfield Asset Management, DigitalBridge Group, Digital Realty, Equinix, Australian pension fund AustralianSuper, and NextDC & Macquarie Capital were all previously linked as potentially interested in acquiring at least part of the company.

EQT currently owns data center operator EdgeConneX through its infrastructure funds.