Brookfield and Ontario Teachers’ to scoop up Compass Datacenters

• Founder and CEO Chris Crosby and the existing Compass management team will continue to lead the company
• The deal is expected to close by the end of the year
• RedBird and Ontario Teachers’ originally invested in Compass Datacenters in 2017

Brookfield Infrastructure Partners and existing investor Ontario Teachers’ Pension Plan have agreed to acquire Compass Datacenters, a Dallas-based developer and owner of wholesale data center facilities. No financial terms were disclosed.

The sellers are RedBird Capital Partners and the Azrieli Group. RedBird and Ontario Teachers’ originally invested in Compass Datacenters in 2017.

The deal is expected to close by year’s end. Founder and CEO Chris Crosby and the existing Compass management team will continue to lead the company.

“Digitalization remains a key thematic investment for Brookfield Infrastructure,” said Sam Pollock, CEO of Brookfield Infrastructure, in a statement. “The need for data storage continues to grow at an exponential rate across the globe, and Compass complements our existing platforms in South America, Europe and Asia Pacific. Compass is a best-in-class data center platform that we have known for years and we are excited to partner with Chris, the Compass team, and Ontario Teachers’ to support Compass on its rapid growth journey.”

Brookfield Infrastructure, an affiliate of Toronto-based Brookfield Asset Management, owns and operates assets in the utilities, transport, midstream and data sectors across North and South America, Asia Pacific and Europe.

Ontario Teachers’, Canada’s third largest pension system, is a global investor with net assets of C$247.2 billion as of December 31, 2022. It is based in Toronto, with offices in Hong Kong, London, Mumbai, San Francisco and Singapore.

Goldman Sachs and Guggenheim Securities as joint financial advisors to Compass and RedBird on the transaction. Deutsche Bank Securities served as debt financing advisor.

Brookfield Infrastructure engaged BMO Capital Markets and Scotiabank as joint financial advisors and Kirkland & Ellis as legal counsel. TD Securities is serving as financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison is serving as legal counsel to Ontario Teachers’. Fried, Frank, Harris, Shriver & Jacobson and Wick Phillips served as legal counsel to Compass. DLA Piper served as legal counsel to Compass Management. Fried Frank served as legal counsel to RedBird.