Cyxtera Technologies, the Coral Gables-based global data center provider founded by tech pioneer Manny Medina, said on Monday it has agreed to go public through a merger with a blank-check firm.
The deal with Starboard Value Acquisition Corp. values the combined entity at $3.4 billion.
After the merger, Cyxtera will be listed on the Nasdaq under the new ticker symbol “CYXT.” As part of the deal, Cyxtera will receive $654 million, including $250 million from private investors such as Fidelity Management & Research Company LLC and clients of Starboard.
Cyxtera provides co-location services, which allow companies to keep their privately-owned servers and networking equipment in a third-party data center. Founded in 2017 through the carve-out of CenturyLink’s (now Lumen) data center and colocation business, Cyxtera has grown to become the largest privately held data center provider of retail colocation services globally, the company said. Cyxtera operates 61 data centers in 29 markets globally and counts more than 2,300 enterprises, service providers and government agencies among its customers.
Upon completion of the transaction, the combined company will be the third largest publicly held global provider of retail colocation and Einterconnection services. Cyxtera generated estimated revenues of $690 million and adjusted earnings of $213 million in 2020. Cyxtera is backed by private equity firms BC Partners and Medina Capital, which will roll all of their equity stakes into the combined company. Cyxtera's current owners will own about 58% of the combined company.
“In 2017 we identified a huge opportunity – a premium portfolio of high-quality data center assets with the potential to become a leading global provider in the highly attractive retail colocation market. Nearly four years later, not only has our experienced team successfully deployed new core systems, a new salesforce and a new brand, we have implemented our strategy to provide deeply connected and intelligently automated infrastructure solutions to businesses around the world,” said Medina, Executive Chair of Cyxtera and founder and Managing Partner of Medina Capital, in a statement.