Stonepeak, a leading alternative investment firm specializing in infrastructure and real assets, announced the recapitalization of Cologix, the largest private interconnection and hyperscale edge platform in North America. The recapitalization is being effectuated as a sale of Cologix by Stonepeak Infrastructure Fund II LP and co-investors (Fund II) to Stonepeak-managed vehicles comprising a combination of existing Fund II investors who have chosen to reinvest in the business in partnership with a number of new third-party investors.
“We will continue to leverage our unique footprint of carrier-dense interconnection hubs, public cloud onramps and growing campuses across 11 markets in North America.”
Cologix is North America’s leading network-neutral interconnection and hyperscale edge data center company with more than 600 networks and over 300 cloud providers across the platform. The company provides critical IT infrastructure to more than 1,600 customers through its operations that span 40 interconnection and hyperscale data centers in 11 North American markets. Cologix maintains a strong focus on environmental, social and governance efforts across its business and to date has undertaken various sustainability initiatives, including the use of hydropower, optimizing water usage, and installing the most efficient uninterruptible power supplies in the industry.
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Fund II acquired a majority stake in Cologix in March of 2017 and subsequently partnered with Mubadala Investment Company for an incremental growth capital investment in January 2020. Since 2017, Cologix has invested approximately $1 billion of incremental capital in building out the company’s footprint through various organic and inorganic initiatives.
Cyrus Gentry, Managing Director at Stonepeak, said, “It has been fantastic to partner with Bill and team over the past four years as they have significantly expanded the footprint of the business through both organic development and M&A to build a truly premier interconnection and hyperscale edge platform in North America. Our thesis around the criticality of interconnection in today’s digital society makes an enduring partnership with a business like Cologix an incredibly exciting opportunity.”
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“With this transaction, Cologix is even better positioned to accelerate its expansion by directly supporting the rapid growth of Cologix’s customers,” added Cologix Chief Executive Officer Bill Fathers. “We will continue to leverage our unique footprint of carrier-dense interconnection hubs, public cloud onramps and growing campuses across 11 markets in North America.”
The transaction is expected to close in the first quarter of 2022, subject to a market check process, regulatory approvals and the satisfaction of customary closing conditions.
Goldman Sachs & Co. LLC is acting as financial advisor to Stonepeak. RBC Capital Markets, LLC is acting as financial advisor to Fund II and will run the market check process. Simpson Thacher & Bartlett LLP is acting as legal counsel to Stonepeak.
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