Cyxtera launches after $2.8bn deal acquiring 57 CenturyLink data centres
03 May 2017 | Jason McGee-Abe
Private equity firm BC Partners has launched Cyxtera Technologies after closing acquisitions of CenturyLink’s data centre portfolio and associated colocation business, and of Medina Capital’s security and data analytics portfolio.
The completion of these transactions, valued at around $2.8 billion in the aggregate, sees the combined assets – 57 data centres and cyber security firms Cryptzon, Catbird, Easy solutions, and Brainspace - form the new business, Cyxtera Technologies, which has begun operations effective immediately.
Miami-based Cyxtera Technologies, which combines the data centre portfolio and a modern, cloud- and hybrid-ready security and analytics offerings, seeks to take advantage of US enterprises’ surging demand to have their data hosted and connected to the internet, which has raised valuations in the data centre space.
The combined portfolio offers a powerful, secure and resilient infrastructure platform built for today’s complex, hybrid IT architectures, capable of securing and supporting dedicated infrastructure, private and public clouds, with software and services capabilities that extend protection to on-premises environments. Cyxtera serves more than 3,500 customers around the world.
Corporate executive team
Manuel D. Medina, founder and managing partner of Medina Capital, and founder and former CEO of Terremark Worldwide, leads Cyxtera as CEO. He is joined by his team from Medina Capital, including members of the former senior leadership team of Terremark, a leading provider of data centre, cybersecurity and infrastructure services that was acquired by Verizon in 2011 in a $2 billion transaction representing a 19x EBITDA multiple and 5x return on equity.
Cyxtera’s executive team will also include leaders from the five acquired businesses and a roster of veterans from the enterprise infrastructure and cybersecurity sectors.
“The last two decades have brought seismic changes to enterprise IT availability, agility and scalability, and the next era must be underpinned by a similar revolution in infrastructure security,” said Medina. “I am proud and excited to be working with an all-star team of seasoned professionals with proven success in the fields of IT infrastructure and cybersecurity as we launch a new global platform to help realise this vision, to help our customers operate and secure their critical applications and business systems. I’m delighted to welcome our team, our customers and our partners to Cyxtera.”
Justin Bateman, managing partner for BC Partners, added: “As the complexity of the IT environment grows and threats to its security continue to multiply, it is more important than ever before that institutions – both in the public and private sectors – integrate security into their core infrastructure strategy. Cyxtera is the first company to provide that integrated solution to customers around the world.”
CenturyLink will hold a minority stake in the new business, and intends to continue to offer colocation services as part of its hybrid IT offerings through its commercial relationships with Cyxtera.