SAN FRANCISCO, Dec. 20, 2018 – Digital Realty (NYSE: DLR), a leading global provider of data center, colocation and interconnection solutions, announced today its Brazilian subsidiary, Stellar Participações Ltda., has completed the previously announced acquisition of Ascenty, the leading data center provider in Brazil, from private equity firm Great Hill Partners in a transaction valued at approximately $1.8 billion.
Digital Realty has separately entered into an independent bilateral equity commitment letter with Brookfield Infrastructure, an affiliate of Brookfield Asset Management, one of the largest owners and operators of infrastructure assets globally, under which Brookfield has committed to fund half of the equity investment, estimated at approximately $613 million, excluding Brookfield’s share of the transaction costs, in exchange for 49% of the total equity interests in a joint venture entity expected to ultimately own Ascenty. Digital Realty’s agreement with Brookfield is subject to certain closing conditions and is expected to close in the first quarter of 2019.
“This landmark transaction immediately establishes Digital Realty as the premier data center provider in the rapidly growing Latin America region, and particularly in Brazil, the hub of Latin America’s future technological transformation,” said Digital Realty Chief Executive Officer A. William Stein. “This acquisition is a significant extension of our global platform and strengthens our position as the premier global data center solutions provider.”
Financing Details
The transaction was initially funded with $600 million of proceeds from a non-recourse, five-year secured term loan; the roll-forward of the substantial majority of Ascenty management’s equity interests in exchange for $300 million of Digital Realty Operating Partnership Units; and approximately $1 billion of unsecured corporate borrowings. Digital Realty expects to finalize the permanent capital structure for Ascenty in the first quarter of 2019, in conjunction with closing the joint venture with Brookfield.
About Digital Realty
Digital Realty supports the data center, colocation and interconnection strategies of more than 2,300 firms across its secure, network-rich portfolio of data centers located throughout North America, Europe, Asia and Australia. Digital Realty’s clients include domestic and international companies of all sizes, ranging from cloud and information technology services, communications and social networking to financial services, manufacturing, energy, healthcare, and consumer products. https://www.digitalrealty.com/
About Ascenty
Ascenty is one of Latin America’s largest data center providers with 14 data centers in operation and / or under construction. The company was founded in 2010 and has focused on the construction and operation of world class data centers, serving the largest technology companies in the world. The company’s data centers are interconnected by proprietary fiber-optic networks, over 4,500 kilometers in length. For more information about Ascenty, visit www.ascenty.com.
