Aligned Data Centers has executed a definitive agreement to acquire ODATA, a data center service provider offering scalable, reliable and flexible IT infrastructure in Latin America, from Patria Investments and other selling stakeholders.
In connection with the acquisition, Aligned, which is majority owned by funds managed by Macquarie Asset Management, entered into a definitive agreement to receive a structured minority investment in ODATA from funds managed by SDC Capital Partners, an operationally focused digital infrastructure investment firm, with extensive experience developing, owning, and operating hyper-scale data centers globally, including in Latin America.
Aligned is a technology infrastructure company offering innovative, sustainable and adaptive Scale Data Centers and Build-to-Scale solutions for global hyper-scale and enterprise customers. This transaction marks the company’s expansion into Latin America and will position it as one of the largest private data center operators in the Americas with a footprint spanning approximately two GW across 30 sites at full buildout.
ODATA is among the fastest-growing hyper-scale data center platforms in Latin America, with operational facilities strategically located across Brazil, Colombia, Mexico, and Chile, as well as additional data centers under development across the region. In addition to alignment on providing scalable, flexible, and ultra-connected IT infrastructure solutions, ODATA’s commitment to a renewable energy strategy and sustainable design practices is consistent with Aligned’s ESG vision. The company is structuring a solution to become a self-producer of renewable energy in Brazil and has a clear path to provide 100% green energy, a key requirement of hyper-scale customers.
Demand for wholesale colocation in key LATAM markets is expected to grow considerably over the next 10 years, driven largely by rising hyper-scale, cloud service provider and government entity demands, as well as increased digitalization and connectivity in key Central and South American markets. High-performance computing, IoT, Big Data and AI have increased demand for scalable data center infrastructure capable of supporting growing densities with maximum efficiency.
The transaction is being funded by Aligned alongside a preferred equity investment from funds managed by SDC. In addition, SMBC, MUFG (as co-structuring coordinators), Deutsche Bank, and Nomura acted as joint lead arrangers for the newly committed debt financing for this transaction.
Guggenheim Securities and J.P. Morgan Securities LLC are acting as financial co-advisors to Aligned, and Vinson & Elkins LLP is serving as its legal counsel. Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal advisor to SDC Capital Partners and Paul Hastings LLP is serving as legal advisor to the joint lead arrangers. Evercore and DH Capital, a division of Citizens are acting as financial advisors to Patria Investments and ODATA. Proskauer Rose LLP and Pinheiro Neto Advogados are serving as its legal counsel.
The transaction is expected to close in early 2023. Financial terms were not disclosed.