US-based non-public funding agency Bain Capital has agreed to promote its knowledge centre portfolio firm WinTriX DC Group’s Chinese language enterprise in a transaction valued at $4bn.
Based on Bain Capital, the transaction is the most important merger and acquisition deal in China’s knowledge centre trade historical past.
The enterprise might be acquired by a consortium led by Shenzhen Dongyangguang Trade (HEC). The consortium buying the enterprise additionally consists of institutional traders akin to insurance coverage firms and native authorities funds.
This settlement follows earlier stories indicating that Bain Capital had engaged advisers and begun discussions with potential consumers for the sale.
WinTrix DC Group’s China operations (Chindata) have developed right into a outstanding hyperscale knowledge centre platform since 2018, supporting China’s digital transformation.
Bain Capital China chair and associate Jonathan Zhu stated: “Chindata’s journey displays Bain Capital’s technique of partnering with excellent administration groups to construct category-defining infrastructure platforms.
“Immediately, Chindata has developed into one in every of China’s main digital infrastructure platforms, with unmatched scale and technical capabilities. We consider HEC will proceed to construct on this legacy, bringing its sturdy industrial capabilities to help the subsequent part of Chindata’s improvement.”
The deal is anticipated to assist HEC broaden into the information centre sector, enhancing its competitiveness within the digital financial system infrastructure trade chain.
A Bain Capital spokesperson informed Reuters that the HEC-led consortium emerged profitable from a aggressive bidding course of that commenced earlier this yr.
The deal is anticipated to conclude within the first quarter of subsequent yr, pending regulatory approval.
WinTriX counts Chinese language web know-how firm ByteDance as its largest buyer. In 2022, ByteDance accounted for 86% of its income, as reported by Fitch Rankings.
Along with its China operations, WinTriX additionally operates knowledge centres in India and Malaysia.
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