Bain Capital will be taking full ownership of data center firm Chindata Group Holdings Ltd., after signing a deal to take the company private.
According to a statement by the firm released Friday, the investment firm will pay $4.30 per share of ordinary stock and $8.60 per American depositary share under the terms of the deal, which roughly aligns with the details of a Bloomberg News report. The final deal marks a 7.5% increase over the proposed purchase price at the outset of negotiations.
Bain, together with a number of new and existing investors will acquire all outstanding shares of the company. The investment firm had already had a roughly 42.2% stake in the Beijing-based data center business. The deal would mean the equity value of Chindata would be roughly $3.16 billion, according to a press release.
Jonathan Zhu, partner and the co-head of Asia private equity at Bain Capital said in the statement, “We believe taking Chindata Group private is the best way to provide attractive returns to existing public shareholders and secure the long-term success of the company.”
Investors are increasingly attracted to data centers, perceiving them as having stable returns, and excellent growth potential since new technologies are requiring ever more data-processing capabilities.
According to its publicly available information, Chindata runs carrier-neutral data centers in China, India, and Malaysia. In 2019, Bain bought Chindata from Wangsu Science & Technology Co., merging it with the company Bridge Data Centers, from its portfolio. In 2020, through an initial public offering in the US, Chindata raised $621 million.
