Cyxtera Technologies: Cyxtera property sought after by Brookfield and Digital Realty

Aug 16, 2023 | Posted by Abdul-Rahman Oladimeji

Reportedly, Brookfield and Digital Realty are interested in acquiring the struggling Cyxtera. According to Bloomberg, several parties, including Brookfield Infrastructure Partners and Digital Realty Trust, are interested in purchasing the assets of the insolvent colocation company. The firms refused to comment.

Cyxtera filed for protection under Chapter 11 at the beginning of June as it grappled with over a billion dollars of debts, most of which were long-term debts maturing within the following year. This month, the company submitted to the US Bankruptcy Court for the District of New Jersey a reorganization plan to eradicate more than $950 million of Cyxtera's pre-filing debt.

As part of the company's reorganization, Cyxtera is seeking new investors or an acquirer. The company has previously stated that six parties are interested in acquiring its assets, although they were not identified. Prior to filing for bankruptcy, the colo company operated more than 60 facilities comprising more than 245MW in 29 global markets, with the majority of its portfolio being leased. Since the filing, it has rejected licenses at data centers owned by Prime in Silicon Valley, Stack in Elk Grove, Illinois, and additional facilities in Washington and Amsterdam.