DataBank, a Dallas, TX-based provider of enterprise-class data center, connectivity and managed services, received a $185m investment from Colony Capital (NYSE: CLNY).
Colony made the 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 investor in the company, 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.
Led by Raul K. Martynek, CEO, DataBank is a provider of enterprise-class data center, cloud, and connectivity services. The company operates 20 data centers in 9 US markets, including Dallas, Minneapolis, Kansas City, Cleveland, Pittsburgh, Salt Lake City, Baltimore, Atlanta, and Indianapolis.