U.S. investment firm Bain Capital has agreed to sell data centre operator WinTriX DC Group’s China business to a consortium led by Guangdong Hec Technology for 28 billion yuan ($3.93 billion), the companies announced on Wednesday.
Hec Technology and its controlling shareholder will boost capital in a joint venture by 7.5 billion yuan to partially fund the deal, which will be carried out by a subsidiary of the JV, the firm said in a stock exchange filing.
Institutional investors and local government funds are also part of the consortium, Bain Capital said in a separate announcement.
The acquisition can help Hec Technology expand into the data centre business and strengthen its core competitiveness in the digital economy infrastructure industry chain, the firm said in the filing.
Bain Capital acquired the predecessor of WinTriX DC Group, formerly known as Chindata Group Holdings, in 2019 and merged it with Southeast Asia data centre operator Bridge Data Centres in the same year.
The planned acquisition comes nearly two years after Bain Capital took Nasdaq-listed Chindata private in a $3.16 billion deal.
WinTriX counts social media giant ByteDance as its largest customer, which contributed 86% of its revenue in 2022, according to a Fitch Ratings report.
Outside China, it also operates data centres in India and Malaysia.
Reuters
