DigitalBridge finalizes $2.2 billion recapitalization of DataBank
DigitalBridge Group, a digital infrastructure firm, has completed the recapitalization of its portfolio company, DataBank, an edge data center platform.
With an additional $219 million in commitments, the total recapitalization now stands at $2.2 billion. This achievement will lead to the deconsolidation of DataBank from DigitalBridge’s financial statements.
According to DataBank, the company helps global enterprises, tech and content providers to deploy and manage critical applications and data across a nationwide platform. DataBank’s portfolio comprises over 65 data centers, 20 interconnection hubs spanning 27 markets, on-ramps to a cloud provider ecosystem and a modular edge data center platform.
Marc Ganzi, the CEO of DigitalBridge, says the successful recapitalization and deconsolidation of DataBank was a key priority for 2023 and “will further simplify our business profile and result in administrative savings.”
Due to the recapitalization, DigitalBridge will receive gross cash proceeds amounting to $50 million. This takes the total gross cash proceeds to $479 million. Concurrently, DigitalBridge’s ownership in DataBank will reduce to 9.87%.
The pricing structure of the recapitalization implies a pre-transaction net equity value of $905 million for DigitalBridge’s stake. It reflects a 2.0x multiple of the invested capital since December 2019.
DigitalBridge intends to retain its 9.87% stake, which holds a market value of $434 million.
Last November, DigitalBridge Group was in the news for acquiring an ownership stake in AIMS Group to establish an edge data center platform in Southeast Asia. The company said the move aimed to expand DigitalBridge’s regional presence.
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