Apollo Funds to Buy European Data Center Business from STACK
Apollo Funds Set to Acquire European Data Center Operations
LONDON and NEW YORK — Apollo (NYSE: APO) has officially announced a landmark deal in the realm of digital infrastructure. Their managed infrastructure funds will acquire the European colocation business from STACK Infrastructure, marking a strategic growth initiative.
This acquisition involves multiple data center assets situated in prime, interconnected locations, aimed at providing essential services to a wide array of clients, including major telecommunications firms, IT services, and financial organizations. These data centers will enhance connectivity and operational efficiency across Europe.
Strategic Insights from Leadership
CEO Sherif Rizkalla expressed enthusiasm about partnering with Apollo, emphasizing that this collaboration will foster the growth of their business. By leveraging Apollo's expertise and resources, he believes they are well-positioned to embrace industry changes and increase value for all stakeholders involved.
Vision for Future Growth
Adam Petrie, a Partner at Apollo, shared strong confidence in the future of the data center market, citing demand forces that favor high-quality, interconnected colocation facilities. This acquisition represents a solid opportunity for continuous growth, underscoring Apollo's commitment to driving the business forward.
Changing Landscape for STACK
According to John Eland, Chief Executive Officer for STACK EMEA, establishing a dedicated enterprise unit has become vital for addressing the needs of hyperscale clients. This structural evolution signifies a shift in focus but assures former enterprise clients that they will maintain a high level of service and support throughout this transition.
Management Transition Plans
The current management and workforce operating within the EMEA colocation business will transition to the new entity, adopting a new brand as this business leaves the STACK name behind. The rebranding effort aligns with STACK’s dedication to pursuing hyperscale developments throughout the region.
Transaction Overview and Implications
The acquisition is subject to customary closing conditions, including regulatory approvals. This strategic move by Apollo aligns with its broader portfolio growth and diversification plans, potentially enabling increased market presence in Europe.
About Apollo and Its Vision
Apollo stands out as a leading global alternative asset manager, with a mission focused on offering clients exceptional returns across various investment styles, including private equity and credit markets. Apollo’s innovative capital solutions aim to foster growth while aligning the interests of clients, companies, and communities.
Insights into BODI and STACK Infrastructure
BODI, operating under Blue Owl’s Real Assets platform, is recognized for its focus on the digital infrastructure sector, managing substantial capital in real estate private equity. STACK Infrastructure continues to position itself strategically, offering versatile digital infrastructure solutions that cater to the evolving needs of innovative companies globally.
Frequently Asked Questions
What is the significance of this acquisition for Apollo?
This acquisition allows Apollo to expand its portfolio in digital infrastructure and capitalize on the growing demand for data center services.
How will the business transition impact existing clients?
Clients can expect to receive uninterrupted support as the existing management team transitions to the new entity focusing on enhanced service quality.
What markets does the acquired business operate in?
The acquired business spans key European markets, enhancing connectivity and operational capabilities for clients across the continent.
How does this deal affect STACK's future direction?
STACK will continue its focus on hyperscale development while ensuring that existing enterprise clients are well supported during this transition.
What can be expected from Apollo in the future?
Apollo is poised for continued growth in the digital infrastructure sector while leveraging their expert resources to enhance value and service for stakeholders.
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