Investment firm Sixth Street has acquired a minority stake in data center firm EdgeConneX from EQT.
The companies this week announced that the EQT Infrastructure IV and V funds have signed an agreement to sell a minority stake in EdgeConneX to funds managed by Sixth Street.
Terms of the deal were not disclosed, but it is expected to close in Q4 2024. EQT Infrastructure will remain the largest shareholder following the closing of the transaction.
“With this transaction, EQT believes EdgeConneX is well-equipped to deliver scalable, high-performance data center solutions that will power the next generation of AI,” said Jan Vesely, partner within EQT Infrastructure’s advisory team.
Julian Salisbury, co-chief investment officer at Sixth Street, added: “EdgeConneX is well-positioned for future success with the scale, high-quality performance, and expanding capabilities required to meet the increasing global demand for data center capacity and services.”
Founded in 2009, EdgeConneX has a global footprint of 80 data centers in operation or development across more than 50 markets across North America, Europe, APAC, and South America. The company was initially focused on smaller-scale data centers in the US, but has gradually expanded its scope and geography, moving into build-to-suit and hyperscale facilities.
Sixth Street was established in 2009 as a strategic partnership with TPG. The firm has $80 billion in assets under management and committed capital and has investments across software, life sciences, sports, finance, digital infrastructure, real estate, energy, and agriculture. It previously invested in AirTrunk prior to its 2020 acquisition by Macquarie.
EQT’s Infrastructure IV fund acquired the colocation provider from an investor group led by Providence Equity Partners in August 2020 for an undisclosed fee, though previous rumors of a sale suggested a potential $2.5 billion price tag. EQT’s Infrastructure’s Infrastructure V invested in EdgeConneX the following year.
Morgan Stanley & Co. LLC served as lead financial advisor, Goldman Sachs served as financial advisor and Simpson Thacher & Bartlett provided legal counsel to EQT Infrastructure. Centerview Partners LLC served as exclusive financial advisor and Debevoise & Plimpton provided legal counsel to Sixth Street.
