Data center investment giant DigitalBridge Group could soon be sold to a group led by alternative asset manager 26North, according to a report from market research firm IJGlobal.
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According to IJGlobal, 26North is in late-stage talks to acquire Florida-based DigitalBridge, one of the most prominent fund managers focused exclusively on digital infrastructure. Energy trader Mercuria is reportedly partnering with 26North in the deal, which could be finalized in the coming days.
26North is an alternative asset management firm founded in 2022 by Josh Harris, a co-founder of Apollo Global Management and the owner of the Philadelphia 76ers, Washington Commanders and New Jersey Devils.
Although none of the three firms rumored to be involved in the talks has commented on the deal, shares of DigitalBridge jumped more than 20% over the weekend following the report’s publication, with Wall Street analysts suggesting such an acquisition would make sense for the data center fund manager.
"While we do not know whether the report is valid or any transaction imminent, we believe an acquisition of DBRG by a larger alternative asset manager makes strategic sense in order to broaden DBRG's scale," Keefe, Bruyette & Woods analyst Jade Rahmani wrote in an investor note, according to Seeking Alpha.
Launched in 2021 as a rebrand of Colony Capital, DigitalBridge quickly emerged as one of the most prominent digital infrastructure investors funding the postpandemic data center boom, building a portfolio the firm says is now close to $100B in total assets.
The firm is a major backer of data center providers like Vantage Data Centers, DataBank, Scala, AtlasEdge Data Centres, Landmark Dividend, Switch and Yondr, which it acquired last year. DigitalBridge also owns dozens of individual data centers, as well as a modular data center provider and a significant portfolio of towers and other digital infrastructure assets.
In February, DigitalBridge founder and CEO Marc Ganzi told investors the firm had a total development pipeline of 16 gigawatts, 12 GW of which the firm was capable of delivering within three years.
Despite its vast holdings, the firm has fared poorly on public markets in recent months, its share price dropping as much as 40% since the start of the year and nearly 80% compared to its high in 2021. As a result, rumors of an acquisition have swirled since last year.
