DigitalBridge announces the recapitalization of DataBank

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BOCA RATON, Fla.–(BUSINESS WIRE)–DigitalBridge Group, Inc. (NYSE: DBRG) (“DigitalBridge”) today announced the recapitalization of its holding company DataBank, a leading nationwide edge data center platform . The initial phase of the recapitalization is structured as a sale of participations to the affiliates of Swiss Life Asset Management SA (“Swiss Life Asset Managers”) and EDF Invest (“EDF Invest”). Under the terms of the agreement, SLAM and EDF will acquire a 27% fully diluted stake in DataBank for approximately $1.2 billion in cash from existing investors.

Marc Ganzi, CEO of DigitalBridge, said, “Since we acquired DataBank in 2016, we have expanded its footprint, capacity and customer base in key metropolitan areas across the United States, transforming DataBank from a business serving three markets with six facilities in the first state-of-the-art infrastructure platform serving twenty-seven markets in more than sixty-five facilities. The formation of this new permanent capital vehicle allows DigitalBridge shareholders to maintain significant exposure to the next phase of value creation at DataBank alongside our new co-investors while freeing up significant capital at an attractive valuation to fuel future additional digital mergers and acquisitions.

DataBank is the largest state-of-the-art infrastructure operator in the United States, enabling the world’s leading enterprises, technologies and content providers to consistently deploy and manage their critical applications and data on one national platform. DataBank’s portfolio includes over 65 data centers, 20 interconnect hubs in over 27 markets, on-ramps to an ecosystem of cloud providers, and a modular edge data center platform.

Mr. Ganzi added, “This transaction will catalyze DataBank’s next phase of growth with a new group of reputable investors poised to benefit from the continued powerful expansion of edge infrastructure and the track record and expertise of DigitalBridge when it comes to investing in the digital infrastructure ecosystem.

“This recapitalization allows us to accelerate our expansion efforts and capture substantial secular growth in edge computing,” said Raul Martynek, CEO of DataBank. “DataBank is strategically positioned as the leading platform to deliver and enable the network edge ecosystem as the shift from traditional centralized infrastructures continues to evolve to the edge.”

Upon completion of this initial phase of the recapitalization and pursuant to the transaction announced in this release, DigitalBridge’s ownership interest in DataBank will be reduced to 15.5% and DigitalBridge will receive cash proceeds of $230 million, implying a pre-trade net worth of $906 million. , including retained net worth of $676 million.

Subsequent stages of the recapitalization are expected to allow new investors to acquire stakes in DataBank from existing investors, including DigitalBridge, prior to the expected completion of the recapitalization in the fourth quarter of 2022. The recapitalization transactions are and will be subject to various closing conditions, including receipt of required regulatory approvals. Additional details regarding the key terms of the recapitalization are contained in a current report on Form 8-K filed by the company with the United States Securities and Exchange Commission.

Swiss Life Asset Managers was advised by DH Capital as financial advisor and Vinson & Elkins LLP as legal advisor. DataBank was advised by Goldman Sachs as financial advisor and Proskauer Rose LLP as legal advisors. DigitalBridge was advised by Wachtell, Lipton, Rosen & Katz as legal advisors. PJT Partners acted as exclusive financial advisor to the Independent Transaction Committee of DigitalBridge’s Board of Directors.

About Data Bank

DataBank enables the world’s leading enterprises, technologies and content providers to consistently deploy and manage their infrastructure, applications and data on the right platform, at the right time and in the right place. Our colocation and edge infrastructure footprint consists of over 65 data centers and 20 interconnect hubs in over 27 markets, gateways to an ecosystem of cloud providers, and a modular data center platform. edge data with virtually unlimited reach.

We combine these platforms with contract portability, managed security, compliance enablement, hands-on support and a 100% uptime guarantee, to give our customers absolute confidence in their IT infrastructure and the power to create a limitless digital future for their business. .

About Swiss Life Asset Management Ltd

Swiss Life Asset Managers has over 160 years of experience in managing assets on behalf of the Swiss Life Group and its clients. The investment philosophy of Swiss Life Asset Managers focuses on the principles of a long-term strategic approach, the preservation of capital, the generation of consistent and sustainable returns as well as a responsible approach to risk. Swiss Life Asset Managers offers its wealth management expertise to third-party clients in Switzerland, France, Germany, Luxembourg and the United Kingdom. As of December 31, 2021, assets managed by Swiss Life Asset Managers on behalf of third-party clients amounted to 99 billion euros. Together with the investment mandates of the Swiss Life Group, the total assets under management of Swiss Life Asset Managers amount to 266 billion euros, of which 9.0 billion euros are managed by the Infrastructure Equity business area. Swiss Life Asset Managers has a dedicated infrastructure team of over 42 investment professionals, focusing on investments in global infrastructure assets, including renewable energy, and a proven track record in creating of value to its customers.

About EDF Invest

EDF Invest is EDF’s investment subsidiary for unlisted Dedicated Assets. The Dedicated Assets will finance the dismantling of EDF power plants in France. EDF Invest currently manages around €9 billion in equity and is aiming for around €12 billion in the coming years. Our mission is to diversify EDF’s Dedicated Assets portfolio and extend its investment horizon by targeting three classes of unlisted assets in France and abroad: Infrastructure, Real Estate and Funds.

Follow EDF Invest on: www.edfinvest.com and www.linkedin.com/company/edf-invest

About Digital Bridge

DigitalBridge (NYSE: DBRG) is one of the world’s leading digital infrastructure investment firms. With a legacy of more than 25 years of investing in and operating businesses across the digital ecosystem, including cell towers, data centers, fiber, small cells and edge infrastructure, the he DigitalBridge team manages a $47 billion portfolio of digital infrastructure assets on behalf of its limited partners and shareholders. Based in Boca Raton, DigitalBridge has key offices in New York, Los Angeles, London and Singapore. For more information, visit www.digitalbridge.com.

Caution Regarding Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends, and similar expressions regarding matters that are not historical facts. In some cases, you can identify forward-looking statements by using forward-looking words such as “may”, “will”, “should”, “expect”, “intend”, “anticipate”, “anticipate “, “believes”, “estimates”, “predicts” or “potential” or the negative of these words and expressions or similar words or expressions which are predictions or indicate future events or trends and which do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond our control, and may cause actual results to differ materially from those expressed in any forward-looking statement. factors that could cause such a difference include, but are not limited to, whether the recapitalization of DataBank will be completed on schedule or at all, whether the Company will realize any of the anticipated benefits of the a recapitalization of DataBank, and other risks and uncertainties, including those detailed in the company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, Quarterly Report on Form 10-Q for the quarter ended March 31, 2022 and its other reports filed from time to time with the U.S. Securities and Exchange Commission (“SEC”). All forward-looking statements reflect the Company’s good faith beliefs, assumptions and expectations, but are not guarantees of future performance. The Company cautions investors not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date of this report. The Company is under no obligation to update any of these forward-looking statements after the date of this release, or to conform any prior statements to actual results or revised expectations, and the Company does not intend to do it.

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