Brookfield and OTPP have acquired a major player in the data centre sector
Brookfield Infrastructure Partners LP (Brookfield) and Ontario Teachers' Pension Plan (OTPP) have successfully acquired Compass Datacenters, a privately held data center operator. The consortium, led by Brookfield and OTPP, sealed the deal for an undisclosed amount, as announced by Compass Datacenters last week.
Insiders familiar with the matter revealed to Reuters that the transaction carried an enterprise value of approximately $5.5 billion.
Driven by the surge in cloud computing, the data center industry has witnessed a significant increase in dealmaking over the past years. This growth has attracted major infrastructure investors while prompting consolidation due to the industry's fragmented nature.
According to Reuters, Brookfield previously acquired a majority stake in Data4, a deal that valued the data center operator at around $3.8 billion, including debt.
"The need for data storage continues to grow at an exponential rate across the globe, and Compass complements our existing platforms in South America, Europe and Asia Pacific," said Brookfield CEO Sam Pollock.
After the expected completion of the transaction by the end of 2023, Compass founder and CEO Chris Crosby, along with the current management team, will continue to lead the company.
