Abu Dhabi state investor Mubadala Investment Company said it will sell its stake in North American data centre operator Cologix.

The transaction will see current investor Stonepeak recapitalise Cologix through the sale of Cologix by Stonepeak Infrastructure Fund II LP and co-investors (Fund II) to Stonepeak-managed vehicles comprising a combination of existing Fund II investors who have chosen to reinvest in the business in partnership with a number of new third-party investors.

Fund II acquired a majority stake in Cologix in March of 2017 and subsequently partnered with Mubadala Investment Company for an incremental growth capital investment in January 2020.

Since 2017, Cologix has invested approximately US$1 billion of incremental capital in building out the company’s footprint through various organic and inorganic initiatives.

Cyrus Gentry, Managing Director at Stonepeak, said: “It has been fantastic to partner with Bill and team over the past four years as they have significantly expanded the footprint of the business through both organic development and M&A to build a truly premier interconnection and hyperscale edge platform in North America.

“Our thesis around the criticality of interconnection in today’s digital society makes an enduring partnership with a business like Cologix an incredibly exciting opportunity.”

The transaction is expected to close in the first quarter of 2022, subject to a market check process, regulatory approvals and the satisfaction of customary closing conditions.

Khaled Al Qubaisi, CEO, Real Estate and Infrastructure Investments at Mubadala, added: “Our success as a leading investor lies in our ability to identify uniquely-placed quality businesses to venture into, and equally importantly, assess monetization opportunities to ensure that we maintain significant capital growth and a healthy portfolio of business investments.

“We firmly believe that our involvement with Cologix ticked all those boxes from the outset and we are pleased to have contributed to this successful partnership.”

Cologix has today 1,600 customers served by 40 data centres in 11 North American markets.

Cologix chief executive officer Bill Fathers, added: “With this transaction, Cologix is even better positioned to accelerate its expansion by directly supporting the rapid growth of Cologix’s customers.

“We will continue to leverage our unique footprint of carrier-dense interconnection hubs, public cloud onramps and growing campuses across 11 markets in North America.”

Goldman Sachs & Co. LLC is acting as financial advisor to Stonepeak. RBC Capital Markets, LLC is acting as financial advisor to Fund II and will run the market check process. Simpson Thacher & Bartlett LLP is acting as legal counsel to Stonepeak.

Stonepeak has approximately $43.5 billion of assets under management.