Chindata goes private after a $3 billion acquisition deal with PE firm Bain Capital
Chinese data center operator Chindata Group announced on Wednesday that it has received an offer from investor Bain Capital to take the company private. The proposed deal values the company at nearly $2.93 billion.
Following this news, Chindata’s shares, which have lost more than a fifth of their value this year, saw a notable increase of around 16%, reaching $7.29 in pre-market trading.
Bain Capital’s offer values each American depositary share of Chindata at $8, which represents a premium of more than 27% compared to the company’s last closing price. As it stands, Bain Capital already holds a 42.2% stake in Chindata, Reuters reported, citing a statement from the firm.
The growing adoption of AI technologies has resulted in an increased demand for data centers and cloud services. However, industry analysts predict that enterprise customers will focus on optimizing their spending on cloud services.
Founded in 2015, Chindata Group is a major Chinese company that specializes in operating and developing large-scale data centers. Since its inception eight years ago, the company has quickly become a prominent player in China’s data center industry. The company offers a range of services, including the design and operation of data centers in China, India, and Southeast Asia.
In the last few years, Chindata has expanded its operations beyond China to international markets, especially Southeast Asia and India. This expansion is driven by the growing demand for data storage and processing capabilities in those regions.
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