M&A Deal Summary

EQT and Sixth Street Partners Acquire EdgeConneX

On August 19, 2020, private equity firm EQT and asset manager Sixth Street Partners acquired information technology company EdgeConneX from Meritage Funds and Providence Equity Partners

Acquisition Highlights
  • This is EQT’s 19th and Sixth Street Partners’ 3rd transaction in the Information Technology sector.
  • This is EQT’s 33rd and Sixth Street Partners’ 9th transaction in the United States.
  • This is EQT’s 1st and Sixth Street Partners’ 1st transaction in Virginia.

M&A Deal Summary

Date 2020-08-19
Target EdgeConneX
Sector Information Technology
Buyer(s) EQT
Sixth Street Partners
Sellers(s) Meritage Funds
Providence Equity Partners
Deal Type Secondary Buyout
Advisor(s) Evercore Group (Financial)
Simpson Thacher & Bartlett (Legal)

Target

EdgeConneX

Herndon, Virginia, United States
EdgeConneX builds and operates data centers for cloud, content, network, and other service providers requiring both larger purpose-built facilities as well as edge facilities located closer to consumer and enterprise users to support latency-sensitive applications cost-effectively. EdgeConneX was founded in 2009 and is based in Herndon, Virginia.

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Buyer(S) 2

Buyer

EQT

Stockholm, Sweden

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1994
PE ASSETS 242.0B EUR
Size Mega
Type Sector Agnostic
DESCRIPTION

EQT is a global private equity group that purses a variety of investment strategies around the world. EQT is divided into several investment disciplines, including private capital, real assets, credit, and venture. The Firm's private capital group targets large, market-leading enterprises (investment size of €125 to €1.5 billion) across Europe and the US, as well as mid-market, growth companies (investment size of €40 to €125 million) across the US, Europe, China, and Southeast Asia. The Firm's real assets group seeks to identify control or co-control equity investments (investment size of €500 to €1 billion) in medium-sized infrastructure companies that provide an essential service to society, are recession resilient, and have secure cash flows. EQT's credit group provides flexible, long-term debt capital solutions to medium-sized European businesses, across a wide range of sectors. EQT was established in 1994 and is headquartered in Stockholm, Sweden.


DEAL STATS #
Overall 230 of 317
Sector (Information Technology) 19 of 27
Type (Secondary Buyout) 62 of 97
State (Virginia) 1 of 2
Country (United States) 33 of 59
Year (2020) 8 of 19
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2020-08-12 Musti Group

Helsinki, Finland

Musti Group is a pet care specialist, offering a wide and curated range of pet supplies, accessories, foods, and services. The company has a focused omnichannel operating model with a network of more than 280 physical stores across Finland, Sweden, and Norway. Musti Group was founded in 1988 and is based in Helsinki, Finland.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2020-08-31 Colisee

Paris, France

Colisee is a European operator of nursing home facilities and homecare services for the elderly. Colisee operates 270 nursing homes as well as assisted living facilities and home care service agencies across France, Belgium, Spain, and Italy. Colisee was established in 1976 and is headquartered in Paris, France.

Buy -
Buyer

Sixth Street Partners


Category Asset Manager
Founded 2009
PE ASSETS 65.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Sixth Street is a global alternative asset manager and lender that offers a wide range of capital solutions to small, medium, and large companies. The Firm maintains a variety of investment vehicles focused on growth companies, infrastructure, insurance, agriculture as well as other strategies. Sixth Street was established in 2009 and is headquartered in San Francisco, California.


DEAL STATS #
Overall 9 of 26
Sector (Information Technology) 3 of 5
Type (Secondary Buyout) 2 of 3
State (Virginia) 1 of 1
Country (United States) 9 of 23
Year (2020) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2019-04-10 Emplifi

Columbus, Ohio, United States

Emplifi is a provider of AI-driven customer engagement, digital self-service, and first-party consumer data management software. Emplifi’s technology enables companies to provide more efficient customer service, protect their brands, and increase customer loyalty. Emplifi was founded in 1995 and is based in Columbus, Ohio.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2021-01-12 Legends

New York, New York, United States

Legends provides hospitality, merchandise, ticket sales, planning, sponsorships and experiential services to the sports and entertainment industries, as well as the management of landmark attractions such as Yankee Stadium, AT&T Stadium (home of the Dallas Cowboys) and the observatory at New York City’s World Trade Center. Legends was founded in 2008 and is based in New York.

Buy -

Seller(S) 2

SELLER

Meritage Funds

Arvada, Colorado, United States

Investor Investor Investor Investor


Category Growth Capital Firm
Founded 1998
PE ASSETS 1.0B USD
Size Large
Type Sector Focused
DESCRIPTION

Meritage Funds is a private investment firm focused on growth equity opportunities. The Firm targets companies that deliver tech-based services that leverage recurring revenue business models. Areas of interest include businesses that 'enable communications, deliver content, and facilitate commerce'. Prospective transaction situations include direct equity financings, recapitalizations, control acquisitions, consolidations, restructurings, spin-outs and management buy-outs. Meritage typically looks to commit $3 to $20 million over the lifecycle of an investment. Meritage Funds was formed in 1998 and is based in Arvada, Colorado.


DEAL STATS #
Overall 12 of 14
Sector (Information Technology) 3 of 4
Type (Secondary Buyout) 2 of 3
State (Virginia) 2 of 2
Country (United States) 10 of 12
Year (2020) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2018-03-15 Faction

Denver, Colorado, United States

Faction is a provider of cloud computing services. Faction is entirely focused on providing its services through channel partners, such as value added resellers, managed service providers and data centers. Faction was established in 2006 and is based in Denver, Colorado.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2024-01-16 Datavail

Broomfield, Colorado, United States

Datavail is a provider of remote database administration (DBA) services in North America. Datavail offers 24/7 managed database services, database design, architecture, and staffing. The company specializes in Oracle, Oracle E-Business Suite, Microsoft SQL Server, MySQL, MongoDB, DB2 and SharePoint, and provides flexible onsite, offsite, and offshore delivery options to meet each customer's unique business needs. Datavail was founded in 2007 and is based in Broomfield, Colorado.

Sell -
SELLER

Providence Equity Partners

Providence, Rhode Island, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1989
PE ASSETS 36.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Providence Equity Partners is a specialist private equity firm that targets investments in media, entertainment, communications, and information companies. Specifically, Providence seeks investments in wireless and wireline telephony, cable television content and distribution, music, film, publishing, radio and television broadcasting, and other media and communications sectors. Providence Equity looks to commit $150 million to $800 million of equity capital in transactions ranging from growth financings and recapitalizations, to buyouts and take-privates. Providence Equity Partners was formed in 1989 and has offices in Providence, Rhode Island; New York, New York; Los Angeles, California; London, United Kingdom; Hong Kong, China; and New Delhi, India.


DEAL STATS #
Overall 82 of 100
Sector (Information Technology) 7 of 8
Type (Secondary Buyout) 23 of 31
State (Virginia) 5 of 6
Country (United States) 54 of 68
Year (2020) 4 of 8
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2020-04-28 DivvyCloud

Arlington, Virginia, United States

DivvyCloud is a provider of security and compliance automation for public cloud and container infrastructure. DivvyCloud helps enterprise customers improve security, take control, and minimize risk as they embrace the dynamic, self-service, nature of public cloud and container infrastructure. DivvyCloud was launched in 2013 and is based in Arlington, Virginia.

Sell $145M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2020-09-21 ZeniMax Media

Rockville, Maryland, United States

ZeniMax Media is a media organization headquartered outside Washington DC with international publishing offices around the globe. Through its subsidiaries, ZeniMax Media creates and publishes original interactive entertainment content for consoles, PCs, and handheld/wireless devices. ZeniMax Media divisions include Bethesda Softworks, Bethesda Game Studios, id Software, Arkane Studios, Tango Gameworks, MachineGames, ZeniMax Online Studios, Alpha Dog Games, Roundhouse Studios, ZeniMax Europe Ltd., ZeniMax Asia K.K., ZeniMax Asia Pacific Limited, and ZeniMax Australia Pty Ltd.

Sell $7.5B