Private Equity Firm EQT Intends to Buy EdgeConneX for $2.5 Billion, Says Bloomberg

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EdgeConneX Opening Buenos Aires
EdgeConneX Opening Buenos Aires

EQT AB, a Nordic buyout firm, is said to be in talks to buy data center company EdgeConneX for at least $2.5 billion. According to Bloomberg, people familiar with the matter have declared that EQT is discussing buying the Herndon, Virginia-based company from investors including Providence Equity Partners.

Founded in 2009, EdgeConneX is a wholesale provider of data center services for content, network, colocation, CDNs and service providers, owns more than 40 data centers in North America, Europe and South America. Providence Equity acquired a stake in the company in 2016.

EdgeConneX’s ‘edge’ data center solutions range from hyperlocal to hyperscale, and from purpose-built to build-to-order. The company provides its services to a diverse portfolio of industries including Content, Cloud, Networks, Gaming, Automotive, SaaS, IoT, HPC, Security, and more.

EQTFounded in 1994, EQT has EUR40 billion (about $44 billion) in assets under management, up from EUR30 billion in average assets under management in 2018. The private equity company counts 650 employees, of whom 330 are within their ‘Investment Advisory’ teams

The investment company has its offices located in 15 countries across Europe, APAC and North America.

Data Center Expansion

EdgeConneX has expanded its edge data center presence across the world quite aggressively by acquisitions and own data center building projects in recent years. In January 2016, the Herndon, Virginia-based data center company expanded its data center footprint internationally with a new ‘Edge Data Center’ (EDC) deployment in Amsterdam. In a response to this acquisition, EdgeConneX stated in an article on HostingJournalist.com that they planned its Amsterdam facility to be their first Edge Data Center in Europe, while they were looking to replicate EdgeConneX’s U.S. data center services model internationally.

In September 2017, EdgeConneX launched their Toronto, Canada data center, while in November 2018 the company acquired Linxdatacenter’s facility in Warsaw, Poland. Most recently, EdgeConneX opened its data center in Buenos Aires, Argentina.

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