Data Center Operator To Go Public Via SPAC Merger At $4B Valuation

A Florida-based company that converts existing industrial facilities into data centers is joining the wave of digital infrastructure companies looking to tap the public equities market.

TECfusions Inc. has agreed to merge with Apex Treasury Corp., a special purpose acquisition company registered in the Cayman Islands, according to a regulatory filing. The deal, which is set to close by the end of this year, values the company at $4B.

The valuation includes planned and advanced projects, an expected expansion into Chile and long-term customer agreements, The Wall Street Journal reported. TECfusions owns data centers in Virginia, Pennsylvania and Arizona.

The deal is backed by an unidentified institutional investor that plans to provide $35M in private investment in public equity funds at $10 per share.

"As a public company, we anticipate access to the public capital markets will enhance our ability to accelerate development across our existing portfolio, expand into additional strategic markets, and continue building a leading infrastructure platform for the global AI economy in partnership with the communities," TECfusions founder Simon Tusha said in a statement.

Vero Beach, Florida-based Apex Treasury is backed by investors based in the United Kingdom, led by former Merrill Lynch executive Ajmal Rahman and crypto investor Hugh Cochrane. Its stock was up moderately, nearly a dollar, on the Nasdaq following the news late Wednesday morning.

TECfusions told the WSJ it chose to partner with a SPAC, also known as a “blank check company,” because it provides “better predictability” amid volatility in equity markets than a traditional initial public offering.

Last week, Brookfield-backed data center operator Csquare missed its capital target by $300M in its IPO after shares sold for $21 each, rather than the projected $23 to $27.

Data center companies going public are becoming increasingly common again following an industrywide exit from public markets in 2021 and 2022.

Switch, a Las Vegas-based developer and operator, and Softbank-backed artificial intelligence infrastructure developer SBEnergy have announced their intentions to pursue an IPO in the past few months.

Blackstone Digital Infrastructure Trust went public in mid-May on the New York Stock Exchange, raising $1.75B and hitting its $20-per-share valuation target.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

Debt Flood Shrinks Bank OZK's Real Estate Book Faster Than Planned

The Governor Races And Referendums Where Housing Is On The Ballot

Trump: Data Centers 'Mandated' To Supply Own Electricity, Should Pay 'Dividend' To Communities

Making Data Center Construction Supply Chains Smarter

Amazon Ditches Ashburn Data Center Plan, Shifts To Mixed-Use Vision

Apollo To Buy Majority Stake In $2B UDR Portfolio

Harrison Street Launches Marina-Focused Investment Fund

CoreWeave's Debt Troubles Fuel Fears Of An AI Data Center Reckoning

Blackstone's $1.3B Multifamily Loan Hits Special Servicing After Missing Maturity

CBRE Expands Data Center Footprint With $1B Acquisition Of Onnec Group

Why Data Centers Need A Perimeter Security Partner With Global Reach

Big Banks Take Bigger CRE Losses As They Clear Out Problem Loans