Bankrupt Cyxtera Technologies is currently in advanced discussions to sell a significant portion of its data centres to Brookfield Infrastructure Partners.
As part of its Chapter 11 filing, Cyxtera has been looking at two possible tracks, either recapitalising itself, with lenders taking control of the firm, or selling itself. Cxytera’s and Brookfield Infrastructure Partners’s negotiations are continuing and could still fall apart, according to the people, who asked not to be identified because the matter is private.
Brookfield Infrastructure Partners has been actively expanding its data centre portfolio. This expansion includes recent acquisitions of European firm Data4 and Compass Datacenters LLC. Additionally, they own Dawn Acquisitions LLC, which operates as Evoque Data Centre Solutions.
Before its bankruptcy in June, Cyxtera was engaged in discussions with lenders to address its nearly $870 million debt due next year. The company was originally formed in 2017 through the merger of CenturyLink’s data centre business and Medina Capital’s security and data analytics operations. In 2021, Cyxtera also merged with a blank-check company, valuing the combined entity at approximately $3.4 billion.