Zayo has agreed to sell its data centre unit zColo to DataBank. The deal gives DataBank 44 data centres in more than 20 markets across the US and Europe. DataBank will own and manage the sites, where Zayo will remain an anchor customer to provide network connectivity services for its customers.
The deal more than doubles DataBank's current footprint of 20 data centres in nine markets, while also securing it a position in several tier-1 cities. The company acquires over 3,000 customers and takes its pro forma annual revenue to over USD 450 million. Installed space will reach 1.1 million square feet, with 141 MW of power.
The sale follows Zayo's takeover earlier this year by EQT and Digital Colony and takes the company back to its plan to split into networks and data centre companies. DataBank will finance the deal with support from an investor group led by its controlling shareholder Colony Capital and including Nuveen Real Estate and others. In addition, Colony Capital is investing USD 145 million to maintain its 20 percent stake in DataBank. Debt financing for the transaction has been underwritten by TD Securities, Truist Securities and Societe Generale.
Pending regulatory approval, the takeover is expected to close by year-end. No details on the price of the takeover were disclosed.
