Brookfield Infrastructure Partners LP (BIP) and its institutional partners, along with existing investor Ontario Teachers’ Pension Plan, on Tuesday, June 20, announced that they have agreed to acquire Compass Datacenters LLC from RedBird Capital Partners LLC and Azrieli Group Ltd.
Brookfield Infrastructure, a Hamilton, Bermuda-based asset management company, and Toronto-based investment firm Ontario Teachers’ did not disclose the terms of the transaction.
Upon the closing, Compass founder and CEO Chris Crosby and the management team of the Dallas-based company will continue in their positions.
In January, The Deal reported the data center company was progressing with an auction process launched last year, as a lockup agreement between the existing investors was set to expire. The backers, however, had a right of first refusal on any deal.
Compass builds data centers for large clients and operates data center campuses of its own. Brookfield and Ontario Teachers’ said the new ownership structure will enable the company to execute its sustainable and large-scale data center campuses across multiple regions with operational and financial support.
The buyers anticipated the transaction would close by the end of 2023, subject to customary regulatory approvals.
Goldman, Sachs & Co. and Guggenheim Securities LLC provided financial advice to Compass Datacenters and RedBird. Deutsche Bank Securities Inc. was debt financing adviser.
A Fried, Frank, Harris, Shriver & Jacobson LLP team led by Randi Lally and P. Ryan Messier and Wick Phillips Gould & Martin LLP provided legal counsel to Compass. A DLA Piper team led by Dan Rollman and Jason Juall was legal counsel to Compass management, while Fried Frank also was legal counsel to RedBird.
Brookfield Infrastructure turned to BMO Capital Markets Corp. and Scotiabank for financial advice, while Kim Hicks and Roald Nashi led a Kirkland & Ellis LLP team that provided legal counsel.
TD Securities LLC was financial adviser to Ontario Teachers’, and Ian M. Hazlett, Adam M. Givertz and associate Lewis M. Fainer of Paul, Weiss, Rifkind, Wharton & Garrison LLP provided legal counsel.
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