Stonepeak Recapitalizes Cologix in $3 Billion Transaction

Stonepeak has completed its $3 billion equity recapitalization of Cologix, the largest private interconnection and hyperscale edge platform in North America.

Cologix also completed a $1.65 billion asset-backed securitization earlier this year to support continued growth.

The Stonepeak recapitalization included a sale of Cologix by Stonepeak Infrastructure Fund II and co-investors to Stonepeak-managed vehicles.

Cologix is a network-neutral interconnection and hyperscale edge data center company. It has a carrier-dense ecosystem of more than 600 networks. It also has more than 300 cloud providers and 29 onramps across its platform.

The company provides colocation and connectivity solutions to more than 1,600 customers. Its operations span more than 40 digital edge and Scalelogix hyperscale edge data centers in 11 North American markets.

Accelerating Growth

Laura Ortman is Cologix‘s president and chief revenue officer. She said Stonepeak created a “continuation vehicle,” a first in the digital infrastructure sector. Continuation vehicles are investment funds created to acquire a single portfolio company investment, or multiple portfolio investments.

Cologix’s Laura Ortman

“Cologix now has an enterprise valuation of $4.6 billion,” she said. “This recapitalization transaction along with our recent debt refinancing enables Cologix to accelerate its growth plans in 2022 and beyond. Our progress to deliver Scalelogix hyperscale edge data center to the market has led to new investors that want to invest in the growth of both our digital edge business as well as our rapidly expanding Scalelogix facilities.”

The recapitalization is “good news” for Cologix’s employees, customers and partners alike, Ortman said.

“This transaction will provide more opportunities for Cologix’s partners to offer their clients highly scalable colocation and connectivity services across North America,” she said. “Partners play a key role in Cologix’s short-and long-term growth as together we can meet their clients’ growing business needs. Partners can continue to turn to Cologix as a secure and financially sound colocation and interconnection solution.”

Investing in Cologix

Stonepeak Infrastructure Fund II acquired a majority stake in Cologix five years ago and subsequently partnered with Mubadala Investment. Mubadala exited as part of the recapitalization.

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

Cyrus Gentry is managing director of Stonepeak.

“We are excited to extend and deepen our partnership with the Cologix team through this transaction, and look forward to supporting [Cologix chairman and CEO Bill Fathers] and team as they continue to build out Cologix’s leading North American interconnection and hyperscale edge platform in the years ahead,” he said.