Advanced talks are underway as Cyxtera Technologies inc. seeks to sell a large number of its data centers to Brookfield Infrastructure Partners.
The company, which recently announced bankruptcy in June, has reportedly been assessing two potential routes. One, is for lenders to take control of the company and therefore for Cyxtera to recapitalize itself, the other is to sell.
Negotiations are ongoing between Cyxtera and Brookfield Infrastructure Partners, however it has been reported that the deal still has potential to fall through. With the recent acquisitions of European firm Data4 and Compass Datacenters LLC, Brookfield Infrastructure Partners are in the process of developing its data center holdings. The company also owns Dawn Acquisitions LLC, operating as Evoque Data Center Solutions.
Cyxtera, which was formed in 2017 following the merging of CenturyLink’s data center and colocation firm with security and data analytics operations company Medina Capital. In 2021 Cyxtera joined with a black-check company, the venture subsequently valuing the company at US $3.4 billion.
Bloomberg, who first reported the story, previously disclosed that interest in Cyxtera’s assets have also come from Digital Realty Trust. Before its bankruptcy announcement in June, Cyxtera had begun negotiations with lenders, assessing the best way to manage $860 million in debt which was due next year. A hearing on November 6th next month will provide confirmation on the company’s next steps.
