According to Bloomberg, Switch Inc. is mulling over different strategic options, including a potential sale. Reports show that the firm is working with advisers to determine the best option. The company is currently valued at over $7 billion. Cowen analysts wrote to clients earlier in the month that there’s a high chance that Switch could be a candidate for a private takeover. The analysts took note of the huge amounts of private capital trooping into the data center industry, the valuation gap between private and public companies, amongst other variables. Acquisitions and mergers were also pointed out.
In November last year, the company voted to convert into a REIT, a move that will give it a good tax arrangement. We have reasons to believe that this move further makes Switch a more attractive target for acquisition.
