Starboard SPAC nears $3.4 billion merger deal for Cyxtera: WSJ

Industry:    2021-02-22

Starboard Value Acquisition Corp’s special-purpose acquisition company is discussing a merger deal with Cyxtera Technologies Inc that would value the data-center provider at around $3.4 billion including debt, the Wall Street Journal reported here on Sunday.

Cyxtera’s existing owners, including private-equity firms BC Partners and Medina Capital, are planning to roll their equity stakes into the combined firm, the report said, citing people familiar with the matter.

The deal could be finalized by Monday, assuming the talks don’t fall apart, the report said.

Starboard and Cyxtera did not immediately respond to Reuters requests for comments.

The SPAC raised $360 million when it went public in September last year.

Miami-based Cyxtera has more than 60 data centers providing services to thousands of enterprises and U.S. federal government agencies, according to the company’s website.

Cyxtera’s 2020 revenue stood at around $690 million, WSJ reported citing sources.

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