EQT Infrastructure is buying global data centre provider EdgeConneX from a Providence Equity Partners-led investor group.

Media reports in October last year indicated that EQT was in talks to buy EdgeConneX in a $2.5bn deal.

The Stockholm-headquartered fund manager said today its EQT Infrastructure IV fund has agreed to the data centre provider for an undisclosed sum.

Completing the deal, which is expected to be in the fourth quarter of 2020, will mean 80-85% of the €9bn raised for the fund last year will have been invested, the manager said.

EdgeConneX operates and developing over 40 facilities in 33 markets across North America, Europe and South America.

EQT said it is committed to actively support EdgeConneX’s accelerated growth via new market entries and material expansions of existing locations.

Jan Vesely, partner at EQT Partners, said: “This partnership represents an exciting opportunity for EQT in a sector and geographies where we have significant experience.

“EQT looks forward to working with the team in continuing to grow the business and identify new expansion opportunities.”

Randy Brouckman, CEO of EdgeConneX, said: “EQT brings significant financial resources and digital infrastructure industry experience which EdgeConneX will use to accelerate growth and invest in new data centres around the world.”

Chris Ragona, managing director at Providence Equity Partners, said: “We have enjoyed working with Brouckman and team over the past five years and are pleased to have helped the company grow significantly, especially overseas.

“We fully expect EdgeConneX will continue its momentum and success as the company enters this next chapter.”

To read the digital edition of the latest IPE Real Assets magazine click here.