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- Compass Datacenters
Compass Datacenters Acquisition, Valuation, Funding & Investors
Compass Datacenters was acquired by Brookfield Infrastructure Partners and Ontario Teachers' Pension Plan for $5.5B in June 2023.
Compass Datacenters acquisition price
$5.5B
Acquired by Brookfield Infrastructure Partners, Ontario Teachers' Pension Plan · Jun 2023
Cumulative funding Compass Datacenters raised
$135M
across 1 funding round
Key investors in Compass Datacenters
Ontario Teachers' Pension Plan
RedBird Capital Partners
Azrieli Group
About Compass Datacenters
Compass Datacenters develops and operates data center campuses for hyperscale and cloud customers. The company is headquartered in Dallas, Texas, and uses standardized designs, prefabricated components and manufacturing methods to support construction and expansion. Its development approach combines land acquisition, supply-chain planning and financing for long-term infrastructure. Compass serves customers with substantial computing capacity requirements and offers designs that can accommodate both air and liquid cooling. The business finances development and recycles capital from stabilized facilities to support further projects. Its institutional partners include Brookfield Infrastructure, Ontario Teachers’ Pension Plan and KKR, with KKR participating through a portfolio capital partnership.
Founded
2011
HQ
Website
Status
Acquired
Customer focus
B2B
Revenue model
Services
Valuation
$5.5B (acquired Jun 2023)
Sectors
Compass Datacenters Acquisition
Compass Datacenters was acquired by Brookfield Infrastructure Partners and Ontario Teachers' Pension Plan for $5.5B on 20 June 2023.
Before the acquisition Compass Datacenters had raised $135M across 1 funding round.
Brookfield Infrastructure and Ontario Teachers' Pension Plan agreed on 20 June 2023 to acquire Compass Datacenters from RedBird Capital Partners and Azrieli Group, in a transaction reported to value the Dallas-based data center developer at an enterprise value of about $5.5 billion. Ontario Teachers', which had backed Compass alongside RedBird since 2017, rolled its stake into the new ownership, while RedBird and Azrieli sold their interests; the parties did not disclose terms, and the deal was expected to close by the end of 2023. Brookfield Infrastructure won a contested process against DigitalBridge. Founder and chief executive Chris Crosby and the existing management team continued to lead the company. Compass designs, builds and operates large data center campuses for hyperscale cloud providers and large enterprises across North America and Israel, using a standardized, build-to-suit model supported by long-term leases. The company was founded in 2011, grew with RedBird and Ontario Teachers' capital from 2017, and added Azrieli Group as a 20% shareholder for $135 million in 2019. It also acquired the Montreal-based data center operator ROOT Data Center in 2019. The buyers said Compass's development pipeline positioned it to meet growing demand for digital infrastructure driven by cloud computing and artificial intelligence.
| Acquirer | Date | Type | Price |
|---|---|---|---|
| 20 Jun 2023 | PE buyout | $5.5B |
Sources: globenewswire.com, techerati.com, en.wikipedia.org
Compass Datacenters Funding History
Compass Datacenters has raised a total of $135M across 1 funding round.
Compass Datacenters funding rounds
| Date | Stage | Investors | Raised | Deal Summary |
|---|---|---|---|---|
| Jul 2019 | Undisclosed stage | Ontario Teachers' Pension Plan; Azrieli Group; RedBird Capital Partners | $135M | Compass Datacenters, a Dallas-based developer of customized wholesale data centers for cloud and hyperscale customers, announced on July 18, 2019, a $3 billion expansion plan for new campuses in markets like Phoenix and Northern Virginia. The growth is supported by additional capital commitments from existing investors RedBird Capital Partners and Ontario Teachers’ Pension Plan, plus new partner Azrieli Group. Azrieli invested $135 million for a 20% stake in Compass Holdco, with an option to increase to 33% by end of 2020, implying a post-money valuation of $675 million. This funding enables accelerated development of hyperscale campuses amid strong U.S. data center demand driven by cloud adoption and 5G. Compass had prior investments from RedBird and Ontario Teachers since 2017 and was scaling rapidly with projects like a 350MW campus in Goodyear, Arizona, and a 75MW campus in Northern Virginia. |
Who has invested in Compass Datacenters?
3 investors have backed Compass Datacenters across its funding rounds, including Ontario Teachers' Pension Plan, RedBird Capital Partners and Azrieli Group.
Compass Datacenters Investors
| Investor | HQ | Rounds | Role | First check |
|---|---|---|---|---|
| 1 | Participant | Jul 2019 | ||
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Benchmark 350K+ Funding Rounds and Disclosed VC Valuation Multiples
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Start Free TrialAcquisitions by Compass Datacenters
Compass Datacenters has acquired 3 companies to date.
Last acquisition by Compass Datacenters was on July 23rd 2019. Compass Datacenters acquired ROOT Data Center for undisclosed valuation.
Latest Acquisitions by Compass Datacenters
| Description | ROOT Data Center is a Montreal-based colocation provider founded to deliver next-generation facilities exceeding standards in security and reliability. ROOT excels in rapid deployment speeds, energy efficiency, and high power density, supporting IT organizations competitively. The firm secured one of Canada's largest data center contracts with a major global hyperscale technology provider through ongoing innovations. | - | - |
| HQ Country | - | ||
| HQ City | Montreal | - | - |
| Deal Date | 23 Jul 2019 | 7 Feb 2018 | 7 Feb 2018 |
| Valuation | undisclosed | undisclosed | undisclosed |
| EV/Revenue | |||
| EV/EBITDA | |||
This data is available for Pro users. Sign up to see all Compass Datacenters acquisitions and their M&A valuation multiples. Start Free Trial | |||
Compass Datacenters Competitors
Compass Datacenters competitors include listed companies like Nextdc, Wangsu and Applied Digital, and private ones like Khazna, Lambda and Bersama Digital Infrastructure.
| Company | HQ | Status | Revenue | EBITDA | Valuation | Revenue Multiple |
|---|---|---|---|---|---|---|
| Private | - | - | $5.5B | - | ||
| Publicly listed | $344M | $135M | $5.5B | 19.2x | ||
| Publicly listed | $699M | $138M | $6B | 6.4x | ||
| Private | $520M | - | $6B | 11.5x | ||
| Publicly listed | $611M | ($85M) | $4.7B | 13.7x | ||
| Private | - | $403M | $6.5B | - |
Compass Datacenters Public Comps
Compass Datacenters is no longer listed, but its public comps include Nextdc, Wangsu, Applied Digital, Insight Enterprises, GDS Holdings, Lumen, D-Wave Quantum, Rigetti, Core Scientific and INWIT.
| Last FY | EV/Revenue | EV/EBITDA | ||||||
|---|---|---|---|---|---|---|---|---|
| Revenue | EBITDA | Last FY | LTM | 2027E | Last FY | LTM | 2027E | |
| $344M | $135M | 20.9x | 19.2x | 53.4x | 40.5x | |||
| $699M | $138M | 7.1x | 6.4x | 36.0x | 32.2x | |||
| $611M | ($85M) | 17.1x | 13.7x | (123.3x) | 49.6x | |||
| $8.2B | $417M | 0.7x | 0.6x | 14.2x | 9.0x | |||
| $1.7B | $888M | 5.6x | 5.2x | 10.9x | 11.1x | |||
| $12B | $1.2B | 1.3x | 1.5x | 13.4x | 5.4x | |||
| $25M | ($373M) | 144.6x | 90.6x | (9.5x) | (29.5x) | |||
| $7M | ($225M) | 498.8x | 173.7x | (15.7x) | (48.5x) | |||
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Common questions about Compass Datacenters
| When was Compass Datacenters founded? | Compass Datacenters was founded in 2011. |
| Where is Compass Datacenters headquartered? | Compass Datacenters is headquartered in Dallas, TX, United States. |
| Is Compass Datacenters publicly listed? | No, Compass Datacenters was acquired by Brookfield Infrastructure Partners and Ontario Teachers' Pension Plan in June 2023. |
| Who acquired Compass Datacenters? | Compass Datacenters was acquired by Brookfield Infrastructure Partners and Ontario Teachers' Pension Plan in June 2023. |
| How much was Compass Datacenters acquired for? | Compass Datacenters was acquired for $5.5B in June 2023. |
| How much funding has Compass Datacenters raised? | Compass Datacenters has raised $135M across 1 funding round. |
| What was Compass Datacenters' last funding round? | Compass Datacenters' last funding round was a $135M undisclosed-stage round in July 2019. |
| Who are Compass Datacenters' investors? | Compass Datacenters' investors include Ontario Teachers' Pension Plan, Azrieli Group and RedBird Capital Partners. |
| Which companies are comparable to Compass Datacenters? | Companies comparable to Compass Datacenters include Khazna, Nextdc, Wangsu, Lambda, Applied Digital and Bersama Digital Infrastructure. |
| How many companies has Compass Datacenters acquired? | Compass Datacenters has acquired 3 companies, including ROOT Data Center, EdgePoint Systems and BitBox USA. |
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