Blackstone Is Said to Near $13B Deal to Acquire AirTrunk

(Bloomberg) -- Blackstone is nearing a deal to acquire Australian data center operator AirTrunk for more than A$20 billion ($13.5 billion) including debt, people familiar with the matter said, in what could be one of the largest digital infrastructure deals this year.

Blackstone has emerged as the preferred buyer for AirTrunk after outbidding other rival bidders, the people said, asking not to be identified because the matter is private. The New York-based alternative asset manager and AirTrunk owners Macquarie Group and PSP Investments are negotiating the final details of a transaction that could be signed as soon as this week, the people said.

A deal hasn’t been finalized and terms could change as talks continue, the people said. Representatives for Blackstone, Macquarie, and PSP declined to comment.

Blackstone has been in talks with banks for a A$5.5 billion loan to be raised at the holding company level, Bloomberg News reported last week. That would be on top of a A$7 billion pre-arranged funding package provided to bidders that four banks have underwritten, while private credit funds have been in talks to provide at least A$1.5 billion of junior debt, Bloomberg reported in June.

Blackstone has been competing with a separate consortium that includes IFM Investors Pty, DigitalBridge Group Inc., Global Infrastructure Partners and Silver Lake Management, people familiar with the matter have said.

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The Asian cloud-services market has been heating up, with KKR & Company agreeing to acquire a 20% stake in Singapore Telecommunications’s regional data center business last year. A year earlier, Blackstone launched its first wholly-owned platform related to the sector in Asia.

Macquarie has a long history of investing in digital infrastructure and is one of the largest active firms in the sector. Ani Satchcroft and Ben Way have helped helm Macquarie Asset Management’s investment in AirTrunk since 2019.

AirTrunk operates data centers in Australia, Singapore, Hong Kong, Japan and Malaysia, according to its website. A group led by Macquarie’s infrastructure arm took control of the company in 2020 in a deal that valued it at about A$3 billion, Bloomberg reported at the time. Prior to that, it was owned by investors including Goldman Sachs Group Inc.’s special situations division.