DigitalBridge to acquire Yondr Group in strategic move

DigitalBridge has announced an agreement to acquire Yondr Group, a developer and operator of hyperscale data centres.

DigitalBridge is a global alternative asset manager focused on digital infrastructure, and this acquisition is positioned as a strategic move to respond to the heightened demand for hyperscale data centres, driven by advancements in artificial intelligence (AI).

Yondr has become recognised as a significant contributor to the digital infrastructure sector by developing and operating sustainable data centres that cater to the complex capacity requirements of large technology companies worldwide.

The company maintains a diverse array of campuses and is reportedly well-suited to address the burgeoning demand for advanced data processing capabilities. This demand is propelled by factors such as digital transformation, the shift to cloud computing, and a rise in AI technologies. Yondr has committed over 420MW of capacity to hyperscalers, with additional resources available to support potential capacity exceeding 1GW.

The acquisition is facilitated through one of DigitalBridge's managed investment funds. According to the release, the investment will support the creation of sustainable data centres that are backed by firm, long-term revenue streams from investment-grade clients.

Jon Mauck, Senior Managing Director at DigitalBridge, stated, "Yondr's assets and strong relationships with leading hyperscale clients align with DigitalBridge's vision to support the future of digital infrastructure. Yondr enhances our existing data centre portfolio and strengthens our ability to support hyperscalers. Together, we are well-positioned to capitalise on the increasing demand for hyperscale data centres—fueled by AI, cloud computing, and the ongoing digital transformation across industries."

After the acquisition, Yondr is expected to continue its operations as an independent entity within the DigitalBridge portfolio. This arrangement aims to capitalise on DigitalBridge's support and experience, potentially enhancing Yondr's capability to serve its clientele while also speeding up its global expansion efforts.

The transaction is anticipated to finalise by early 2025, subject to typical closing conditions.

Financial advisory for Yondr was provided by Citi, while White & Case LLP acted as legal counsel. On DigitalBridge's side, Linklaters served as legal advisors, Deloitte handled financial and tax due diligence, Ramboll offered technical expertise, and Nomura was engaged for financing support.

With a heritage of over 25 years investing in and operating businesses across the digital ecosystem, including cell towers, data centers, fiber, small cells, and edge infrastructure, the DigitalBridge team manages over $84 billion of infrastructure assets on behalf of its limited partners and shareholders. Yondr Group specialises in delivering and operating dedicated infrastructure that is engineered for scale.