Las Vegas-based data center developer Switch Inc. announed Wednesday it would be acquired by DigitalBridge Group and IFM Investors for $11 billion, or $34.25 a share, in cash.
The deal is expected to close later this year, according to a company release. Once the deal closes, Switch will be taken private and no longer trade on the New York Stock Exchange.
Switch founder and CEO Rob Roy said the transaction is in line with the company’s long-term goals, noting that it plans to build more than 11 million square feet of capacity through 2030.
“The combination of our advanced data center infrastructure, significant expansion capacity in our land bank, and a new partnership with experienced digital infrastructure investors lays a strong foundation for Switch’s continued industry leading growth,” Roy said in a statement.
Switch is a well-known player in the data center sector and also known for powering its massive centers using 100 percent renewable energy. It operates centers, totaling up to 5.1 million gross square feet of space, in Nevada, Michigan, Georgia and, most recently, Texas.
Boca Raton, Florida-based DigitalBridge — a rebrand from private equity investor Tom Barrack’s firm Colony Capital — has been focused on buying assets such as data centers and cell towers. And it’s Switch acquisition, in partnership with Australian infrastructure investor IFM, is just the latest in a string of purchases.
Shares of Switch, traded on the NYSE, jumped 9.07 percent to end at $33.54. After hours, shares rose 0.33 percent to $33.65.
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