Data center operator Switch, Inc. (NYSE: SWCH) yesterday announced it has entered into a definitive agreement with DigitalBridge Group, Inc. (NYSE: DBRG), under which DigitalBridge Partners II and an affiliate of global infrastructure investor IFM Investors, will acquire all outstanding common shares of Switch for $34.25 per share in an all-cash transaction valued at approximately $11 billion, including the assumption of debt. Market analysts said the acquisition leaves Equinix and Digital Realty as the only two remaining large domestic publicly traded data center operators.
“Today’s announcement is an important step towards our long-term vision for the growth and evolution of our company. Through this partnership we will be ideally positioned to continue to meet strong customer demand for Switch’s environmentally sustainable Tier 5 data center infrastructure,” said Switch Founder and CEO Rob Roy.
Roy continued: “Following our expansion into a Fifth Prime campus last year, and with our plan to construct more than 11 million additional square feet of capacity through 2030, Switch’s strategic position has never been stronger.” He explained, “The combination of our advanced data center infrastructure, significant expansion capacity in our land bank, and a new partnership with experienced digital infrastructure investors lays a strong foundation for Switch’s continued industry leading growth.”
“At DigitalBridge, we are building the world’s leading global digital infrastructure investment platform, and this transaction allows us to partner with one of the industry’s fastest growing and highest quality data center portfolios,” said DigitalBridge CEO Marc Ganzi. “Rob and his team share our vision for the future of communications infrastructure, making us the ideal partner to scale their business both domestically and internationally to meet the exponentially rising demand from large enterprise customers looking for mission critical digital infrastructure. We are also pleased to partner with IFM Investors, one of the world’s leading institutional infrastructure investors, to execute this compelling transaction,” Ganzi said.
Reader Interactions