DataBank Announces $185 Million Equity Investment from Colony Capital

Transaction provides long-term strategic partner to DataBank to continue its aggressive growth plan

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Jan 06, 2020, 09:01 ET

DALLAS, Jan. 6, 2020 /PRNewswire/ -- DataBank, a leading provider of enterprise-class data center, connectivity and managed services, today announced that Colony Capital (NYSE: CLNY) has made a $185 million investment into DataBank through the purchase of secondary equity interests from existing investors Edgewater Funds and Allstate. Allstate will retain 50% of its interests and continue as a DataBank investor, while Edgewater will fully exit from its position. Nuveen will also continue as an important investor in DataBank, holding its original stake.

The transaction represents Colony Capital's inaugural direct balance sheet investment in digital real estate and its first step in investing in the edge/colocation data center sector. Edgewater's Board Member will step down and be replaced by Justin Chang, Colony's Global Head of Private Equity.

"We are truly appreciative of the support we have received from Edgewater over these last four years," stated Raul K. Martynek, CEO of DataBank. "We look forward to having Colony Capital and its long-term investment vision behind DataBank as we continue to grow our platform."

"We are thrilled to be partnering with DataBank, its management team and investor group, to continue building the premier edge/colocation data center platform in the United States," said Justin Chang. "We look forward to supporting the business with additional capital to fund potential add-on acquisitions and greenfield edge data center developments."

"We want to thank the team at DataBank and our partners at Digital Colony for delivering a successful outcome for Edgewater. We wish DataBank and its management team continued success as it moves ahead," stated The Edgewater Funds.

DataBank operates 20 data centers in 9 US markets, including Dallas, Minneapolis, Kansas City, Cleveland, Pittsburgh, Salt Lake City, Baltimore, Atlanta, and Indianapolis. For more information, please visit www.databank.com.

About DataBank
DataBank is a leading provider of enterprise-class data center, cloud, and connectivity services, offering customers 100% uptime availability of data, applications, and infrastructure. DataBank's managed data center services are anchored in world-class facilities. Our customized technology solutions are designed to help customers effectively manage risk, improve their technology performance, and allow them to focus on their core business objectives. DataBank is headquartered in the historic former Federal Reserve Bank Building, in downtown Dallas, TX. For additional information on DataBank locations and services, please visit www.databank.com or call 1 (800) 840-7533.

About Colony Capital
Colony Capital, Inc. (NYSE: CLNY) is a leading global investment management firm with assets under management of $49 billion, which includes approximately $14 billion of assets under management from Digital Bridge, a leading global investment manager of digital infrastructure assets including wireless towers, small cells, fiber and data centers. The Company manages capital on behalf of its stockholders, as well as institutional and retail investors in private funds, and traded and non-traded real estate investment trusts. The Company has significant holdings in: (a) the healthcare and hospitality property sectors; (b) Colony Credit Real Estate, Inc. (NYSE: CLNC), which is externally managed by a subsidiary of the Company; and (c) various other equity and debt investments. The Company is headquartered in Los Angeles with key offices in Boca Raton, New York, Paris and London, and has over 400 employees across 21 locations in 13 countries as a result of the business combination with Digital Bridge. For additional information regarding the Company and its management and business, please refer to www.clny.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," or "potential" or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond our control, and may cause actual results to differ significantly from those expressed in any forward-looking statement. Factors that might cause such a difference include, without limitation, DataBank's ability to identify and consummate add-on acquisitions or greenfield edge data center developments, as well as whether Colony Capital will contribute any additional capital towards such acquisitions or developments, and other risks and uncertainties detailed in Colony Capital's filings with the U.S. Securities and Exchange Commission ("SEC"). All forward-looking statements reflect Colony Capital's good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Additional information about these and other factors can be found in Colony Capital's reports filed from time to time with the SEC.

Colony Capital cautions investors not to unduly rely on any forward-looking statements. The forward-looking statements speak only as of the date of this press release. Colony Capital is under no duty to update any of these forward-looking statements after the date of this press release, nor to conform prior statements to actual results or revised expectations, and Colony Capital does not intend to do so.

SOURCE DataBank