DigitalBridge announces recapitalization of portfolio firm DataBank
Jun. 16, 2022 5:08 PM ETDigitalBridge Group, Inc. (DBRG)SWSDF, SZLMYBy: Jessica Kuruthukulangara, SA News Editor4 Comments
- DigitalBridge (NYSE:DBRG) on Thursday announced the recapitalization of portfolio firm DataBank, an edge data center platform.
- Initial stage of the recapitalization is being structured as a stake sale to affiliates of Swiss Life Asset Management and EDF Invest.
- Swiss Life and EDF will acquire 27% stake in DataBank for ~$1.2B in cash from existing investors.
- Once this stage is completed, DBRG's stake in DataBank will be reduced to 15.5% and DBRG will receive cash proceeds of $230M, implying a pre-transaction net value of $906M.
- Subsequent stages of recapitalization will result in new investors acquiring stakes in DataBank, prior to projected completion of recapitalization in Q4.
- "This recapitalization allows us to accelerate our expansion efforts and capture substantial secular growth in edge computing," said DataBank CEO Raul Martynek.
- DBRG stock edged 3% higher in aftermarket trade.