BC Partners received some good news and some bad news Tuesday.
The London-based PE firm has completed a roughly $2.8 billion acquisition of CenturyLink’s data center portfolio and co-location business in a joint deal with Miami’s Medina Capital. The firms will combine those assets with Medina’s security and data analytics portfolio to launch Cyxtera Technologies.
The new business will include the 57 data centers previously owned by CenturyLink (NYSE: CTL) and four cybersecurity firms—Cryptzone, Catbird, Easy Solutions and Brain Space—owned by Medina. As part of the deal, CenturyLink will retain a minority stake in the company, with Reuters reporting the holding is valued at $150 million. Longview Asset Management also participated in the deal.
Manuel Medina, founder and managing partner at Medina Capital, will lead Cyxtera as CEO and be joined by his team from the firm. Based out of Miami, the company will employ more than 1,100 and have security and analytics operations in several cities, including Boston, Dallas and London.
PE activity in the systems and information management sector in the US has ballooned over the past half-decade,
with a record 84 such deals last year, according to the PitchBook Platform. That marked a significant uptick from the 69 deals in 2015 and 65 in 2014. And the boom has shown little signs of slowing down, with 27 deals in the sector this year so far.
BC Partners, meanwhile, has had less luck in its joint bid with Pollen Street Capital to acquire London’s Shawbrook Group (LON: SHAW), a specialist lender that Pollen Street listed on the London Stock Exchange with a £725 million market cap in 2015.
The bank’s independent directors have reportedly urged shareholders to reject the PE consortium’s £842 million ($1.09 billion) hostile takeover, saying they’ll spend £4 million to fight the deal. The decision marks the third time Shawbrook has rejected takeover bids from Pollen Street and BC.
Founded in 2011, Shawbrook specializes in commercial mortgages, asset finance and invoice financing for small and mid-market businesses.