Blackstone is said to have a nearly $13 billion deal to acquire AirTrunk

(Bloomberg) — Blackstone Inc. is nearing a deal to buy 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 a of the largest digital infrastructure offerings. this year.

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Blackstone has become the preferred buyer for AirTrunk after beating out 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 Ltd. and PSP Investments are negotiating the final details of a deal that could be signed as soon as this week, the people said.

A deal has not 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 $5.5 billion loan to be raised at the holding company level, Bloomberg News reported last week. This would add to a pre-arranged A$7 billion financing package provided to bidders that four banks have underwritten, while private equity funds were in talks to provide at least A$1.5 billion Australians from junior debt, Bloomberg reported in June.

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

Asia’s cloud services market has heated up, KKR & Co. agreeing to acquire a 20% stake in Singapore Telecommunications Ltd.’s regional data center business last year. A year earlier, Blackstone launched the first wholly-owned platform linked 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 helped lead Macquarie Asset Management’s 2019 investment in AirTrunk.

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 $3 billion, Bloomberg reported at the time. Before that, it was owned by investors including the special situations division of Goldman Sachs Group Inc.

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–With assistance from Vinicy Chan and Sharon Klyne.

(Updates with details on the debt package in the fourth paragraph.)

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