Cyxtera received approval from the U.S. Bankruptcy Court for the District of New Jersey for the sale of substantially all of the company’s assets to Brookfield Infrastructure Partners and its institutional partners.
Cyxtera expects to complete the transaction with Brookfield, subject to regulatory approval and the satisfaction of customary closing conditions, and emerge from the court-supervised process in the first quarter of 2024.
“We are pleased to be moving forward with our sale to Brookfield, which will provide Cyxtera with additional financial flexibility and enable us to benefit from Brookfield’s global infrastructure expertise,” said Nelson Fonseca, Cyxtera’s Chief Executive Officer. “Demand for our innovative data center services remains high, and we see significant opportunities ahead with our customers as we enter this next phase of growth.”
As previously announced on November 1, 2023, Cyxtera entered into an asset purchase agreement (with Brookfield for a sale of substantially all of the Company’s assets. In connection with the APA, Brookfield entered agreements with certain of the company’s landlords to purchase the real estate underlying seven of Cyxtera’s U.S. data centers. Additionally, Cyxtera amended the terms of its leases at three U.S. sites and three international sites to allow it to exit those sites in 2024. Collectively, these transactions will strengthen and optimize Cyxtera’s data center portfolio, better positioning it for the long term.
Earlier this month, Brookfield Infrastructure Partners will acquire substantially all of Cyxtera’s assets for $775 million.In connection with the APA and the court supervised process, Brookfield will purchase from several landlords the real estate at which seven of Cyxtera’s U.S. data centers are located.
