EQT in talks to acquire EdgeConneX with $2.5bn bid

EQT in talks to acquire EdgeConneX with $2.5bn bid

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Swedish infrastructure investor EQT is reportedly in talks to buy data centre firm EdgeConneX for $2.5 billion deal.

According to Bloomberg reports citing people familiar with the matter, EQT is discussing acquiring Virginia-based EdgeConneX from investors, including Providence Equity Partners and Brown Brothers Harriman. 

An EdgeConneX spokesperson told Capacity today: "We cannot comment at this time on these rumours."

The Bloomberg sources claim that no decision has been finalised and talks could fall through. Earlier this year, EdgeConneX executives denied reports that the company had hired investment bankers exploring strategic alternatives or a sale.

It’s been a busy 2019 for EQT who earlier this month announced that EQT is set to buy a German broadband fibre company, Inexio, for a reported €1 billion. Other EQT developments this year include:

EdgeConneX has built over 40 facilities in the Americas and Europe and September saw internet exchange operator DE-CIX enhance capacity in EdgeConneX’s Munich data centre, where Megaport’s elastic cloud connectivity was also recently made available.

The last few years have seen a surging tide of takeovers among data centre operators as they seek scale and try to broaden the markets they address. Earlier this year, Capacity took a deeper look into how the data centre sector is continuing to consolidate.

According to figures from Synergy Research Group, data centre M&A deals were up 18% year-on-year from the first half of 2018, closing 52 deals in that timeframe. 2019 is set to be another record year for data centre M&A with a number more closing since the beginning of July and many more deals have been agreed with formal closure pending.

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