Blackstone (BX.US) is set to acquire AirTrunk for close to A$20bn, one of the largest digital infrastructure deals of the year

Market VisionMonday, Sep 2, 2024 2:30 am ET

1min read

Blackstone Group Inc. is close to a deal to buy AirTrunk, an Australian data center operator, for about A$20bn ($13.5bn), according to people familiar with the matter, which would be one of the largest digital infrastructure deals of the year.

The New York-based alternative asset manager has emerged as the preferred buyer after topping other bidders, the people said. Blackstone, Macquarie Group and PSP Investments are in talks over the final details of the deal, which could be signed as early as this week, the people said.

Representatives for Blackstone, Macquarie and PSP declined to comment.

Bloomberg reported last week that Blackstone had been discussing debt financing with banks to support its acquisition of AirTrunk. The people said Blackstone had been competing with another group including Macquarie, DigitalBridge Group Inc., Global Infrastructure Partners and Silver Lake Management.

The Asian cloud services market has been heating up, with Kkr & Co. agreeing last year to buy a 20 per cent stake in Singapore Telecommunications Ltd’s regional data center business. Blackstone launched its first full-service platform in Asia last year.

Macquarie has a long history of investing in digital infrastructure and is one of the most active companies in the sector. Ani Satchcroft and Ben Way have been helping to lead Macquarie’s investment in AirTrunk since 2019.

AirTrunk’s website shows it has data centers in Australia, Singapore, Hong Kong, Japan and Malaysia. A team led by Macquarie’s infrastructure division took control of the company in 2020, valuing it at about A$3bn, according to a previous report. The company had previously been owned by investors including Goldman’s special situations unit.

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