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Cyxtera Enters Asset Purchase Agreement with Brookfield

Date Announced

November 1, 2023

Lead Office

Toronto

Value

1.30 Billion USD

On November 1, 2023, Brookfield Infrastructure Partners L.P. and its institutional partners (collectively, "Brookfield”) and Cyxtera Technologies ("Cyxtera") entered into an asset purchase agreement under which Brookfield will acquire substantially all of Cyxtera's assets for US$775 million as part of Cyxtera’s Chapter 11 filing. In addition to the asset purchase, Brookfield will purchase from several landlords the real estate at which seven of Cyxtera’s U.S. data centers are located, bringing the total purchase price to US$1.3 billion. These transactions will allow Cyxtera to increase existing facility ownership, secure expansion opportunities in support of robust customer demand, and strengthen its data center platform by giving Cyxtera more control over its cost structure. The transaction is expected to close in the first quarter of 2024.

Brookfield, headquartered in Toronto, Ontario, is a global infrastructure company that owns and operates high quality, long-life assets in the utilities, transport, energy and data infrastructure sectors across North and South America, Asia Pacific and Europe.

Cyxtera, headquartered in Coral Gables, Florida, is a global leader in colocation, interconnection services, and digital infrastructure. Cyxtera delivers cloud-like and flexible infrastructure solutions across its global data center platform and robust partner ecosystem. 

McCarthy Tétrault is acting as Canadian counsel for Brookfield with a team led by Jonathan See, Jeremy Pleasant and Hailey Schenker (Corporate) that included, Raj Juneja, Randy Schwartz, Kabir Jamal, Simon Douville, Brendan Festeryga (Tax), Sean F. Collins, Walker W. MacLeod (Bankruptcy & Restructuring), Grant D. Buchanan and Keith Rose (Telecommunications), Oliver Borgers, Erin Keogh (Competition/Antitrust & Foreign Investment), Isabel Henkelman, Matthew Pekofsky, Niusha Arbabi, Madeleine Hawkins, Xin Yue Zhang (Real Property), Ian Mak (Financing), Laura Weingarden (Environmental), Patrick Pengelly (Labour & Employment), Kelleher Lynch, Julia Miller (Pensions, Benefits & Executive Compensation) and Vincent Yip (Intellectual Property).

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