Brookfield has completed its $775m purchase of Cyxtera, merging the bankrupt provider with its Evoque colo brand to create a combined company with more than 50 locations.
The deal, first announced in November, sees Brookfield acquire the majority of Cyxtera’s assets. Evoque CEO Spencer Mullee will lead the newly merged organization, which forms part of Brookfield Infrastructure’s global data center platform.
Cyxtera filed for bankruptcy last June with debts of more than a billion dollars.
Brookfield seals Cyxtera deal
Combining Evoque and Cyxtera is “a strategic step” that “aligns seamlessly” with Brookfield’s vision for data infrastructure investments, according to Udhay Mathialagan, chair of the board at Evoque and CEO for global data centers at Brookfield Infrastructure.
Mathialagan said: “This move not only swiftly amplifies the joint organization’s market presence, but also diversifies its product portfolio and broadens its customer reach worldwide, with unrivaled connectivity, security, and scalability.”
He added: “By integrating Cyxtera's capabilities and valuable assets, we're providing essential capacity for current demand while also laying the groundwork for our future expansion and advancements.”
Forty additional data centers are being incorporated into Evoque as part of the deal, most of which are based in the US and Canada.
As reported by DCD, Brookfield has also acquired the real estate at seven of Cyxtera’s US data centers from their landlords, which include Digital Realty Trust and Digital Core REIT. It hopes this will give it more control over costs and future expansion opportunities.
Cyxtera deal is a ‘defining moment’ for Evoque
Mullee has been Evoque CEO since last April and said today’s news is a “defining moment” for the company.
“We firmly believe this venture will bring significant benefits to both Cyxtera's and Evoque's customer bases,” Mullee said. “Together, we will provide enhanced services, stronger reliability, and unmatched growth opportunities for our customers and partners.”
He said it would be “business as usual” while the businesses are integrated, and added: “We are committed to making this transition as seamless as possible for our valued customers, partners, and team members.”
Formed in 2021 out of CenturyLink’s colocation business, Cyxtera once operated 60 sites totaling more than 245MW across 29 different markets, most of which were leased. Its bankruptcy came after it struggled to meet long-term debt commitments and was unable to find a buyer.
