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Macquarie Reportedly Seeking T5 Data Centers

July 06, 2018

Bloomberg earlier this week reported that a unit of Australia’s Macquarie Group wants to acquire T5 Data Centers. Various reports indicate this remains a rumor, and that neither company has confirmed the negotiations.

According to Bloomberg, however, the prospective deal could value the U.S. data center provider at $800 million. T5 has data centers in Atlanta and Los Angeles.

If the deal came to pass, Bloomberg said, it would have investment firm Iron Point Partners selling the T5 stake to Macquarie. The media company also noted that Macquarie has an interest in apartment owner Stonehenge Management LLC and a stake in manufactured house company RHP Properties.

As this January DataCenter Knowledge report notes, mergers and acquisitions in the data center space have been fast and furious in recent months. It points to Synergy data estimating data center M&A action last year of $20 billion. Digital Reality’s $7.6 billion acquisition of DuPont Fabros Technology was the largest of the bunch, the media outlet reports.

“Digital Realty Trust and Equinix, two of the world’s largest data center providers, spent more on acquisitions over the last three years than any other company in the space,” it says. “Together, they spent $19 billion over the 2015-2017 period, excluding Equinix’s pending acquisition of the Australia data center operator Metronode, according to Synergy. Equinix has been buying companies in all four global regions, while Digital’s investment has been focused primarily on North America and Europe. CyrusOne, Peak 10, Digital Bridge, NTT, Carter Validus, Iron Mountain, Cyxtera, and Elegant Jubilee have been other key engines of consolidation.”

And a May Synergy report on colocation players says Equinix, Digital Realty, and NTT are the leaders. “Equinix and Digital Realty have grown at rates far in excess of the overall market, due to a combination of organic growth and large M&A deals that have closed in the last year,” Synergy says. “Market leader Equinix had a 13% share of the Q1 market and has subsequently completed two more acquisitions which will help it to further boost its market position in Q2. The closest competitors to the big three are KDDI/Telehouse and China Telecom who both have a 3% market share, followed by a group of operators that each has a 2% share – CyrusOne, Interxion, Cyxtera, Global Switch and Coresite.” 

Edited by Maurice Nagle

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