Brookfield to acquire Cyxtera's assets for $775 million

Brookfield recently announced that it has entered an asset purchase agreement to acquire Cyxtera, following the latter’s bankruptcy, and will combine its new purchase with its other US colo provider, Evoque. Under this agreement, Brookfield Infrastructure Partners and its institutional partners will pay $775 million for “substantially all” of Cyxtera’s assets.

Nelson Fonseca, Cyxtera’s CEO, said, “We are pleased to reach this agreement with Brookfield, which represents a favorable path forward for our customers, partners, and employees,” said Nelson Fonseca, Cyxtera’s CEO. “Throughout our restructuring process, our business has continued to perform well, a testament to our customers’ confidence in our team and our innovative data center platform. This agreement and the changes to the data center portfolio, most importantly our increased facility ownership, will enable us to build on our business momentum and better position Cyxtera for the future.”

Cyxtera filed for Chapter 11 in early June, and the hearing to approve its plan and agreement with Brookfield is scheduled for November 16, 2023.