In 2018, Ascenty announced its acquisition by Digital Realty, in a deal valued at approximately USD 1.8 billion. In a separate transaction, Digital Realty signed a bilateral, independent, equity commitment agreement with Brookfield Infrastructure, a subsidiary of Brookfield Asset Management, one of the largest owners and operators of global infrastructure assets. As part of this agreement, Brookfield committed to provide half of the initial capital investment requirement, estimated at approximately USD 613 million, in exchange for a 49% equity interest in the joint venture.
With the strategic transaction, Ascenty strengthens its position as the leading data center provider in Latin America. “Brookfield’s experience in the Brazilian market brings us a projection of significant integrated growth in Brazil and the region. We are well positioned to meet the growing demand in Latin America with the launch of the new data center in Chile, scheduled for 2020, and our 16 other data centers in Brazil,” said Roberto Rio Branco, Ascenty’s VP of Marketing and Institutional Relations.
Brookfield is a leading global asset manager, managing more than USD 285 billion worldwide. The company has operated in Brazil for over a century, and is currently one of the largest investors in the country, with more than USD 40 billion in managed assets. Digital Realty is part of a global network of more than 210 data centers located across North America, Europe, Latin America, Asia and Australia.
“We are delighted to join Digital Realty’s global platform and to partner with Brookfield to provide our customers with access to one of the world’s largest interconnected data center networks. Working closely with the staff at these companies allows us to scale our next-generation data center and connectivity solutions and to take advantage of new international business opportunities,” said Marcos Siqueira, Ascenty’s VP of Operations.
Ascenty currently has three lines of credit to boost new business, including USD 50 million in revolving credit and two term loans available – one for as much as USD 650 million and another with a USD 75 million shortfall –, all with first-degree collateral. Citi, ING and Natixis serve as the lead lenders and joint managers in these transactions.