Cyxtera Closes Business Combination with Starboard Value Acquisition Corp. and Will Begin Trading on Nasdaq on July 30, 2021
Cyxtera Technologies, Inc. ("Cyxtera" or the "Company"), a global leader in data center colocation and interconnection services, today announced it has completed its business combination with Starboard Value Acquisition Corp. (NASDAQ: SVAC). The business combination, which was approved by SVAC's stockholders at its special meeting held on July 28, 2021, provides Cyxtera access to new capital sources to fuel growth, accelerate product and technology innovation, enhance its ability to quickly meet customer needs and support further strategic go-to-market efforts.
On July 30, 2021, Cyxtera's shares of Class A common stock will begin trading on The Nasdaq Global Select Market (the "Nasdaq") under the symbol "CYXT" and its warrants under the symbol "CYXTW."
"Today marks a key milestone in a journey we launched in 2017 to build a global leader in digital infrastructure with the scale, connectivity and technology to meet the needs of leading enterprises, service providers, and government agencies," said Manuel D. Medina, Chair of Cyxtera and Founder and Managing Partner of Medina Capital. "Cyxtera already has a strong track record of value creation, and we look forward to continuing to deliver innovative solutions for our customers across our global data center platform."
"Cyxtera's team has built a differentiated global data center platform that is well positioned to deliver the innovative solutions our customers require to meet their evolving infrastructure needs," said Nelson Fonseca, President & CEO of Cyxtera. "Having completed our merger with SVAC, we now can accelerate our plans to drive high-margin growth through increased utilization of our existing assets, development of innovative product offerings, and expansion of our global footprint. We look forward to leveraging our data center platform and our experience in successfully operating a publicly traded data center company to create long-term shareholder value."
The Company's leadership, including Chair Manuel D. Medina, CEO Nelson Fonseca, COO Randy Rowland (News - Alert), and CFO Carlos Sagasta, will continue to lead Cyxtera. Mr. Medina and Mr. Fonseca will also serve on the board of the combined company as Chair and Director, respectively, joined by Starboard Value LP CEO and former SVAC Chair Jeff Smith (News - Alert) and former SVAC Industry Advisor Greg Waters. The other members of Cyxtera's board are BC Partners' Partner and Chairman Raymond Svider and Partner Fahim Ahmed, John W. Diercksen, former SVAC director Michelle Felman and Melissa Hathaway.
The company received approximately $493 million in total cash from the transaction before fees, expenses and debt amortization. Proceeds of the transaction will be used to partially retire Company debt and provide incremental cash for growth, as well as to pay transaction expenses.
UBS Investment Bank, Stifel, Nicolaus & Company, and Cowen and Company, LLC served as capital markets advisors to SVAC. Akin Gump Strauss Hauer & Feld LLP served as legal advisor to SVAC. Hughes (News - Alert) Hubbard & Reed LLP served as legal advisor to SVAC Sponsor LLC.
J.P. Morgan Securities LLC served as lead placement agent with Citi, RBC Capital Markets, LLC and UBS Investment Bank as co-placement agents on the PIPE.
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