Some significant data center infrastructure down in Texas will be changing hands according to an announcement yesterday. Switch Data Centers has agreed to purchase Data Foundry in a $420M all cash transaction.
Data Foundry operates a three-facility data center campus in Austin as well as a facility over in Houston. That footprint will add a fifth leg to Switch's national presence, which started out in Las Vegas, expanded to Reno and then out to Grand Rapids, Michigan and Atlanta, Georgia. When the deal is complete, Switch will have 16 operational data centers across six markets.
We have had executives from Data Foundry on here twice over the years for Industry Spotlights, though we have yet to lure Switch into a conversation. Both companies have, until now at least, taken a very organic approach toward growth.
The deal is expected to close this summer, and represents a multiple of 19x to adjusted 2021 EBITDA including $2M in projected run-rate cost synergies. Switch also posted preliminary numbers for Q1, estimating revenue to come in within the range of $129.5-131.5M, with adjusted EBITDA of $72.5-73.5M.
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