Bankrupt Cyxtera Draws Interest From Brookfield, Digital Realty

Cyxtera Technologies Inc., the bankrupt data-center operator, has drawn interest for its assets from multiple parties including Brookfield Infrastructure Partners and Digital Realty Trust Inc., according to people with knowledge of the situation.

(Bloomberg) — Cyxtera Technologies Inc., the bankrupt data-center operator, has drawn interest for its assets from multiple parties including Brookfield Infrastructure Partners and Digital Realty Trust Inc., according to people with knowledge of the situation.

Cyxtera has been looking at a dual-track process as it seeks to wrap up its Chapter 11 case. That includes weighing a sale of its business or a debt recapitalization in which lenders would take control of the firm.

The company said in a news release earlier this week that it has received multiple qualified bids, and final offers are due Aug. 18. Deliberations are fluid and there is no certainty that the parties will proceed with a final bid, said the people, who asked not to be identified because the matter is private.

Representatives for Cyxtera, Digital Realty, Brookfield and Cyxtera’s financial adviser Guggenheim Securities declined to comment.

Brookfield Infrastructure has been on a buying spree in the industry, with recent acquisitions of European data center firm Data4 and Compass Datacenters LLC. It also owns distressed data center Dawn Acquisitions LLC, which does business as Evoque Data Center Solutions.

Prior to its June bankruptcy, the struggling data-center operator had entered into negotiations with lenders on how to tackle nearly $870 million of debt due next year. Cyxtera was formed in 2017 after CenturyLink’s data center and co-location business was combined with Medina Capital’s security and data analytics operations.

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