Colony Capital has invested $185 million in DataBank, a provider of enterprise-class data center, connectivity and managed services. As a result of the transaction, Nuveen will continue as an “important investor” in DataBank retaining its original stake. And, Allstate will retain 50 percent of its stake while Edgewater will exit from its investment.
DALLAS, Jan. 6, 2020 /PRNewswire/ — DataBank, a leading provider of enterprise-class data center, connectivity and managed services, today announced that Colony Capital (NYSE: CLNY) has made a $185 million investment into DataBank through the purchase of secondary equity interests from existing investors Edgewater Funds and Allstate. Allstate will retain 50% of its interests and continue as a DataBank investor, while Edgewater will fully exit from its position. Nuveen will also continue as an important investor in DataBank, holding its original stake.
The transaction represents Colony Capital’s inaugural direct balance sheet investment in digital real estate and its first step in investing in the edge/colocation data center sector. Edgewater’s Board Member will step down and be replaced by Justin Chang, Colony’s Global Head of Private Equity.
“We are truly appreciative of the support we have received from Edgewater over these last four years,” stated Raul K. Martynek, CEO of DataBank. “We look forward to having Colony Capital and its long-term investment vision behind DataBank as we continue to grow our platform.”
“We are thrilled to be partnering with DataBank, its management team and investor group, to continue building the premier edge/colocation data center platform in the United States,” said Justin Chang. “We look forward to supporting the business with additional capital to fund potential add-on acquisitions and greenfield edge data center developments.”
“We want to thank the team at DataBank and our partners at Digital Colony for delivering a successful outcome for Edgewater. We wish DataBank and its management team continued success as it moves ahead,” stated The Edgewater Funds.
DataBank operates 20 data centers in 9 US markets, including Dallas, Minneapolis, Kansas City, Cleveland, Pittsburgh, Salt Lake City, Baltimore, Atlanta, and Indianapolis. For more information, please visit www.databank.com.
DataBank is a leading provider of enterprise-class data center, cloud, and connectivity services, offering customers 100% uptime availability of data, applications, and infrastructure. DataBank’s managed data center services are anchored in world-class facilities. Our customized technology solutions are designed to help customers effectively manage risk, improve their technology performance, and allow them to focus on their core business objectives. DataBank is headquartered in the historic former Federal Reserve Bank Building, in downtown Dallas, TX. For additional information on DataBank locations and services, please visit www.databank.com or call 1 (800) 840-7533.
About Colony Capital
Colony Capital, Inc. (NYSE: CLNY) is a leading global investment management firm with assets under management of $49 billion, which includes approximately $14 billion of assets under management from Digital Bridge, a leading global investment manager of digital infrastructure assets including wireless towers, small cells, fiber and data centers. The Company manages capital on behalf of its stockholders, as well as institutional and retail investors in private funds, and traded and non-traded real estate investment trusts. The Company has significant holdings in: (a) the healthcare and hospitality property sectors; (b) Colony Credit Real Estate, Inc. (NYSE: CLNC), which is externally managed by a subsidiary of the Company; and (c) various other equity and debt investments. The Company is headquartered in Los Angeles with key offices in Boca Raton, New York, Paris and London, and has over 400 employees across 21 locations in 13 countries as a result of the business combination with Digital Bridge. For additional information regarding the Company and its management and business, please refer to www.clny.com.