Aligned Data Centers has announced the execution of a definitive agreement to acquire ODATA, a data centre service provider offering scalable, reliable, and flexible IT infrastructure in Latin America, from Patria Investments and other selling stakeholders. In connection with the acquisition, Aligned, which is majority owned by funds managed by Macquarie Asset Management, entered into a definitive agreement to receive a structured minority investment in ODATA from funds managed by SDC Capital Partners, an operationally focused digital infrastructure investment firm, with extensive experience developing, owning, and operating hyperscale data centres globally, including in Latin America.
Aligned is a technology infrastructure company offering sustainable and adaptive Scale Data Centers and Build-to-Scale solutions for global hyperscale and enterprise customers. This transaction marks the company’s expansion into Latin America and will position it as one of the largest private data centre operators in the Americas with a footprint spanning approximately 2 GW across 30 sites at full buildout.
ODATA is the growing hyperscale data centre platforms in Latin America, with operational facilities strategically located across Brazil, Colombia, Mexico, and Chile, as well as additional data centres currently under development across the region. In addition to alignment on providing scalable, flexible, and ultra-connected IT infrastructure solutions, ODATA’s commitment to a renewable energy strategy and sustainable design practices is consistent with Aligned’s ESG vision. The company is structuring a solution to become a self-producer of renewable energy in Brazil and has a clear path to provide 100% green energy, a key requirement of hyperscale customers.
“The acquisition combines a significant growth runway for expansion and a proven ability to deliver capacity at maximum speed, with regional expertise and partnerships, enhanced fiscal resources, and a resilient supply chain, to deliver a data centre platform that meets the demands of our global hyperscale and enterprise customers,” states Andrew Schaap, CEO of Aligned Data Centers. “We’re excited to welcome Ricardo and the ODATA team to the Aligned fold and look forward to fostering our joint commitments to customer centricity and operational excellence as we embark on the next phase of innovation and growth.”
“The ODATA team and I are very excited to be joining Aligned Data Centres,” adds Ricardo Alario, CEO of ODATA. “The strategic merger of the ODATA and Aligned platforms will provide customers with a broader base of both available and expansion capacity in key locations across the Americas, as well as additional breadth of experience and depth of knowledge across an expanded team of infrastructure experts. We look forward to accelerating the growth of our platform with Aligned and setting a successful cultural course focused on customer and staff centricity, innovation, and operational excellence.”
“ODATA is an exceptional platform created by Patria Investments seven years ago in the data centre market. We are proud to see that the Company rapidly evolved from a startup to one of the leading players in the Latin American market, serving the most prominent cloud providers in Brazil, Chile, Colombia, and Mexico,” comments Felipe Pinto, Infrastructure Partner at Patria Investments.
The executive also highlights that the acquisition of ODATA by Aligned Data Centers, a global player in the technology infrastructure sector, is a recognition of Patria’s ability to develop leading infrastructure platforms across Latin America.
Demand for wholesale colocation in key LATAM markets is expected to grow considerably over the next 10 years, driven largely by rising hyperscale, cloud service provider, and government entity demands, as well as increased digitalisation and connectivity in key Central and South American markets. High-performance computing, IoT, Big Data and AI have increased demand for scalable data centre infrastructure capable of supporting growing densities with maximum efficiency.
The transaction is being funded by Aligned alongside a preferred equity investment from funds managed by SDC. In addition, SMBC, MUFG (as co-structuring coordinators), Deutsche Bank, and Nomura acted as joint lead arrangers for the newly committed debt financing for this transaction.
Guggenheim Securities and J.P. Morgan Securities LLC are acting as financial co-advisors to Aligned, and Vinson & Elkins LLP is serving as its legal counsel. Skadden, Arps, Slate, Meagher & Flom LLP is serving as legal advisor to SDC Capital Partners and Paul Hastings LLP is serving as legal advisor to the joint lead arrangers. Evercore and DH Capital, a division of Citizens are acting as financial advisors to Patria Investments and ODATA. Proskauer Rose LLP and Pinheiro Neto Advogados are serving as its legal counsel.
The transaction is expected to close in early 2023. Financial terms were not disclosed.
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