Providence agrees EdgeConnex exit to EQT, deal said to value business at up to $3bn

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Providence Equity Partners has scored a sale of cloud data centre business EdgeConneX to fellow private equity player EQT in a deal which reportedly values the company at between $2.5bn and $3bn.

EQT tapped its fourth infrastructure fund for the deal. Financial details were not revealed, but a report by Barron’s cited the valuation figure.

EdgeConneX builds and operates data centers for customers that require both larger purpose-built facilities as well as edge facilities located closer to consumer and enterprise users, to support latency-sensitive applications cost effectively.

Providence picked up a stake in the business in 2015.

EQT said it would support the continued development of EdgeConneX, saying it was uniquely positioned to benefit from the secular tailwinds driving increased data center usage.

Jan Vesely, partner at EQT Partners, said, “EQT has followed EdgeConneX’s journey from its early years to its growth into a top data center industry player.

“We are deeply impressed by EdgeConneX’s management team and the success they have had in creating a key contributor to the global cloud infrastructure.

“This partnership represents an exciting opportunity for EQT in a sector and geographies where we have significant experience.”

EQT Infrastructure IV is expected to be 80-85% invested following the deal.

The European private equity house stormed to a €9bn one-and-done final close for Infrastructure IV last year, taking just six months to its hit hard cap for the fund after initially targeting €7.5bn, sources familiar with the fundraise told AltAssets at the time.

Last month EQT set a mammoth €12.5bn goal for yet another flagship infrastructure fundraise.

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