Brookfield Infrastructure and Current Investor Ontario Teachers’ to Takeover Compass Datacenters

Posted on 06/21/2023

Brookfield Infrastructure Partners L.P. and its institutional partners (NYSE: BIP; TSX: BIP.UN) and existing investor Ontario Teachers’ Pension Plan (Ontario Teachers’) have entered into a definitive agreement with RedBird Capital Partners and the Azrieli Group (TASE: AZRG) through which Brookfield Infrastructure and Ontario Teachers’ will acquire Compass Datacenters, LLC. Founder and Chief Executive Officer Chris Crosby and the current Compass management team will continue to lead the company post transaction closing. Digitalization remains a key thematic investment for Brookfield Infrastructure. Compass Datacenters was founded in 2011.

The transaction is expected to close by year end, subject to customary regulatory approvals.

Goldman Sachs & Co. LLC and Guggenheim Securities, LLC served as financial advisors to Compass and RedBird on the transaction. Deutsche Bank Securities Inc. also served as debt financing advisor.

Brookfield Infrastructure engaged BMO Capital Markets and Scotiabank as joint financial advisors and Kirkland & Ellis LLP as legal counsel. TD Securities is serving as financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal counsel to Ontario Teachers’. Fried, Frank, Harris, Shriver & Jacobson LLP and Wick Phillips, LLP served as legal counsel to Compass. DLA Piper served as legal counsel to Compass Management. Fried Frank served as legal counsel to RedBird.

In 2019, Compass Datacenters raised money from existing investors, RedBird Capital Partners, and Ontario Teachers’ Pension Plan. In 2017, RedBird Capital Partners and Ontario Teachers’ Pension Plan made an investment in Compass Datacenters.

Keywords: Brookfield Asset Management, Ontario Teachers Pension Plan.

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