DigitalBridge acquires ArcLight Capital Partners for $1.05 billion

DigitalBridge Group agreed to get ArcLight Capital Partners, a North American powerfulness and electrical infrastructure investor, for a full transaction worth of up to $1.05 billion, the institution said Tuesday. Structurally, the transaction is composed of a $650 cardinal basal terms with an further contingent constituent of arsenic overmuch arsenic $400 million.

Together, the 2 firms would signifier a level targeting what DigitalBridge describes arsenic the intersection of power, AI, and integer infrastructure, with their combined assets exceeding $150 billion. ArcLight volition run arsenic a separately managed concern wrong DigitalBridge pursuing the adjacent of the transaction.

The woody is conditioned connected completion of SoftBank Group Corp.'s antecedently announced acquisition of DigitalBridge and volition not change the presumption oregon information of that transaction. The woody is besides taxable to regulatory approvals and requisite constricted spouse consents.

Since its founding successful 2001, ArcLight's portfolio has encompassed upwards of 70 gigawatts of procreation capableness and astir 48,000 miles of electrical and state transmission and retention infrastructure, with an aggregate endeavor worth exceeding $90 billion. Its North American operations are backed by a dedicated 85-person powerfulness improvement squad and a improvement pipeline that surpasses 15 gigawatts.

"AI is rewiring the planetary powerfulness equation, accelerating concern crossed generation, transmission, and behind-the-meter infrastructure," DigitalBridge CEO Marc Ganzi said successful a statement. "We judge the firms champion positioned for this adjacent signifier of maturation volition beryllium those that are capable to underwrite some integer and vigor infrastructure with adjacent extent and credibility."

Daniel Revers, laminitis of ArcLight, volition go Vice Chairman of DigitalBridge upon completion of the transaction. Angelo Acconcia, presently Managing Partner of ArcLight, volition proceed successful that role, and Jake Erhard, presently a Partner astatine ArcLight, volition go Senior Partner.

"Power has go the captious bottleneck for integer infrastructure buildout, and solving it takes expertise and dedicated people," Angelo Acconcia said successful a statement.

The woody arrives arsenic powerfulness availability has go a cardinal constraint connected information halfway development. As Quartz has tracked the widening spread betwixt energy request and grid capacity, the gait of high-voltage transmission operation has slowed sharply portion hyperscalers contention to bring tens of gigawatts of caller load online, creating structural bottlenecks successful interconnection queues, instrumentality proviso chains, and permitting timelines.

Barclays is acting arsenic fiscal advisor and sole committed financing supplier to DigitalBridge. Morgan Stanley is serving arsenic fiscal advisor to ArcLight.