According to people familiar with a specialty acquisition company, backed by shareholder activist Starboard Value LP, this is an agreement with data center provider Cyxtera Technologies Inc. be combined.
Starboard Value Acquisition Corp. is discussing a deal that will value Cyxtera about $ 3.4 billion, including debt, the people said. It could be concluded on Monday, assuming the talks do not fall apart, they said.
Cyxtera’s existing owners, including private equity firms BC Partners and Medina Capital, plan to split their shares in the combined company, people said.
Cyxtera has more than 60 data centers around the world and serves thousands of companies and government agencies. It is one of the largest so-called retail collocation providers, with its data centers serving and connecting multiple customers and supporting the widespread adoption of hybrid cloud infrastructure. The demand for data management has already increased thanks to the growth of everything from drones to internet-enabled devices, when Covid-19 works remotely and requires schooling, giving the sector an extra boost.
SPACs, which have exploded in popularity, raise money for an initial public offering and then look for a business to combine into an agreement that aims to provide an alternative route to the public markets. The starboard vehicle raised $ 360 million when it was announced last year. In addition, Cyxtera is expected to receive funds raised with the merger, as is typical in SPAC transactions.