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.

Bain Capital was founded in 1984 by a group of partners who previously worked at Bain & Company, a renowned consulting firm. Notably, one of the co-founders of Bain Capital is Mitt Romney, who later gained political prominence.

The Boston, Massachusetts-based private equity firm engages in various investment activities, including private equity, venture capital, credit investments, public equity, and real estate. Over the years, Bain Capital has grown to become a prominent and respected player in the investment industry, with a global presence. The firm has made significant investments across different sectors and has a track record of successful ventures.

With its diverse portfolio and expertise in various investment strategies, Bain Capital continues to be a significant player in the world of private investments.

Bain Capital also partners with disruptive founders to accelerate their ideas to market. The firm invests from seed to growth in startups driving transformation across industries, from SaaS, infrastructure software, and security to fintech and healthcare to commerce and consumer tech. The firm has helped launch and commercializes more than 240 companies, including DocuSign, Jet.com, Lime, LinkedIn, Redis Labs, Rent the Runway, SendGrid, and SurveyMonkey. Bain Capital Ventures has $6.1 billion in assets under management with offices in San Francisco, New York, Boston, and Palo Alto.