May 2, 2022
Brookfield weighs takeover of data-center firm Switch
Andrew Moffs discusses Brookfiled Asset Management
Brookfield Asset Management Inc. is exploring a takeover of data-center operator Switch Inc., according to people familiar with the matter.
The alternative asset manager is among potential buyers circling Las Vegas-based Switch as it weighs a sale, said the people, who asked to not be identified because the matter is private. No final decision has been made and Brookfield could opt against pursuing a deal, the people added.
Switch rose 3.8 per cent to close at US$31 in New York trading Monday, giving the company a market value of about US$7.6 billion.
Representatives for Brookfield and Switch declined to comment.
Data centers have been a hot area for mergers and acquisitions, as the sector is relatively fragmented and has strong growth potential, with companies increasingly doing more business online. Switch is among the largest remaining listed data-center operators in the U.S. Rival CyrusOne Inc. last year agreed to be acquired by KKR & Co. and Global Infrastructure Partners.
Brookfield, one of the largest alternative asset managers in the world, has been active in the space for years, including agreeing to buy data-center operations from AT&T Inc. in 2018.
Switch agreed last year to review its operational and financial targets as part of a settlement with Elliott Investment Management.