Nordic data centre operator DigiPlex said the business is to be acquired by affiliates of IPI Partners, LLC, a global investment platform focused on cloud hosting and other technology and connectivity-related real assets.

Through the very much anticipated transaction, which is expected to close in Q3 2021, IPI will acquire 100% ownership of all DigiPlex Group companies. The financial details of the transaction have not been released.

DigiPlex operates eight data centres across campuses in Oslo, Norway; Stockholm, Sweden; and Copenhagen, Denmark with a combined footprint of 21,000m² built whitespace plus over 400,000m² of land currently available for customer expansion.

The acquisition represents a major shift in the Nordic data centre arena as a large portion of the regional market changes hands as a result of the deal.

It is expected that on or around the closing of the transaction, a call notice will be served on holders of bonds issued by Norwegian DigiPlex entities as issuers listed on the Oslo Stock Exchange for their early redemption in accordance with their terms.

Co-sponsored by ICONIQ Capital, LLC and an affiliate of Iron Point Partners, LLC, IPI has over the past five years, built one of the world’s largest privately-held data centre portfolios focused on the hyperscale and enterprise markets and raised more than $5.25 billion in total equity capital commitments.

Matt A’Hearn, Partner at IPI, said: “DigiPlex is a market leader in the high-growth Nordic data centre sector and we have long admired the quality of its management, employees and business strategy. With DigiPlex’s existing scaled presence and deep development expertise, we will significantly expand our hyperscale-focused data centre portfolio in Europe, a key region of focus for IPI.

“We are excited to partner with the DigiPlex team to further realise on the company’s tremendous growth potential. Utilizing our network and existing businesses, we believe we can together build a platform that meets the rapidly evolving needs of the digital economy in the Nordics and beyond.”

J. Byrne Murphy, founder and Chairman of DigiPlex for the last 20 years, said: “What DigiPlex has achieved over the past 20 years is an amazing accomplishment and a testament to the incredible people who work there.

“It is the right time to give DigiPlex extended firepower to capitalise on its advantages and benefit from the next wave of growth in the industry. It is also crucial to me and to my partner, Bill Conway, to hand DigiPlex off to new owners who recognise and support its people, culture, experience, and customers, as well as the communities in which it operates.”

RBC Capital Markets served as the exclusive financial advisor while Latham & Watkins and Wikborg Rein served as legal advisors to DigiPlex in connection with this transaction.

Gibson, Dunn & Crutcher LLP, Schjodt and Lundgrens served as legal advisors to IPI. Deutsche Bank Credit Solutions and Direct Lending acted as Mandated Lead Arranger.