Apollo Funds to acquire colo business from STACK Infrastructure

The Company comprises seven data center assets in strategic, highly interconnected locations across five key European markets - Stockholm, Oslo, Copenhagen, Milan and Geneva - serving the data center and connectivity needs of a diverse portfolio of blue-chip enterprise clients, including telecommunications carriers, IT and services companies and financial institutions.

Sherif Rizkalla, CEO of the Company, said: “We are delighted to partner with Apollo to accelerate growth of our business as a new, standalone company. Leveraging Apollo’s expertise in infrastructure, significant access to resources and support, we believe we are extraordinarily well-positioned to capitalize on our industry’s tailwinds and bring even more value to our customers, employees and other stakeholders.”

Adam Petrie, Partner at Apollo, said: “We are strong believers in the fundamental tailwinds behind the demand for data center infrastructure. In particular, we believe high-quality, interconnected colocation businesses with differentiated value propositions like the Company’s offer an attractive, secular growth opportunity for the long-term. We are very excited to partner with Sherif and his team in taking this business to the next level and expanding its presence across Europe.”

”A client-first approach is at the heart of STACK, which is why we established a dedicated enterprise colocation business unit in EMEA last year,” said John Eland, Chief Executive Officer, STACK EMEA. “The strategic creation of the colocation business unit enabled us to support the specialised requirements of the hyperscale sector, whilst also enabling our colocation experts to deliver exclusively on the needs of the enterprise sector. As STACK EMEA evolves to focus primarily on hyperscale clients, this transaction solidifies our commitment to hyperscale data center development and operations whilst our former enterprise colocation clients will continue to receive the highest standard of performance and support from dedicated experts.”

As part of the carve-out transaction, the management team and all employees currently operating the EMEA colocation business within STACK are expected to migrate with the Company, which will be re-branded and will no longer bear the “STACK Infrastructure” name or logo. STACK will continue its growth trajectory with a focus on hyperscale development and operations across key EMEA markets.

The transaction is subject to satisfaction of certain closing conditions, including regulatory approvals.

Latham & Watkins LLP served as legal counsel to the Apollo Funds.