Digital Realty is acquiring Ascenty and related data center assets for $2.25 billion. The deal, expected to be approved in Q4, positions Digital Realty to gain a major IT infrastructure footprint in Brazil and Latin America.
The deal’s valuation represents 15.0 times to 15.5 times underwritten forward stabilized EBITDA, Digital Realty says. Generally speaking that’s higher than most MSP and data center deals, which typically are valued at under 10X EBITDA, ChannelE2E believes.
The three-part deal involves:
Digital Realty acquiring Ascenty from Great Hill Partners for $1.8 billion
Digital Realty paying an additional $425 million of capex to fund related data centers that are already under construction.
Brookfield Asset Management paying $613 million for a 49 percent stake in the joint venture between Ascenty and Digital Realty.
NXT Price at posting:
$6.49 Sentiment: Buy Disclosure: Held
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