Flexential, a secure and flexible data center solutions provider, announced a strategic investment from Morgan Stanley Infrastructure Partners (MSIP). And MSIP is partnering with GI Partners to accelerate Flexential’s growth and to support its mission to meet increasing demand for digital infrastructure.
Through a strong foundation of 40+ highly connected data centers across the US and over 325MW of built and under-development capacity, Flexential is prepared for significant growth from enterprise digital transformation, cloud adoption, and the emerging needs of hyperscale and AI workloads. This investment will help fuel Flexential’s ongoing growth strategy, enhance its market presence, and enable continued investment in its national FlexAnywhere platform.
With this transaction, MSIP will invest in the company’s common equity as a co-control investor alongside GI Partners. Together, they will provide a substantial amount of primary capital to fund continued expansion and growth.
Ropes & Gray acted as legal counsel to Flexential and Goldman Sachs & Co. acted as exclusive financial advisor to Flexential and GI Partners. Kirkland & Ellis acted as legal counsel to MSIP, Citi acted as lead financial advisor to MSIP and Evercore also served as financial advisor to MSIP. The deal is expected to close in the fourth quarter of 2024 upon completion of customary regulatory approvals.
KEY QUOTES:
“We are excited to partner with Flexential at this critical moment in the company’s evolution. We believe Flexential’s robust next-generation infrastructure, commitment to innovation, and proven leadership in the industry make it well-positioned to capitalize on market opportunities. We look forward to supporting the company’s continued growth and success in the years to come.”
-Christopher Ortega, Head of Americas, MSIP
“Flexential has proven its leadership in reliable delivery of critical data center services to the most sophisticated customers in the world. The Flexential leadership team has paved the way for sustained growth, and we are thrilled to welcome Morgan Stanley Infrastructure Partners as a partner to help drive the company’s future success.”
-Travis Pearson, Managing Director and Co-Head of Private Equity, GI Partners
“The new partnership with Morgan Stanley Infrastructure Partners, combined with the strong foundation laid with GI Partners, represents a tremendous opportunity for Flexential to further accelerate our growth trajectory and sets the stage for future strategic opportunities. As we continue to invest in expanding our infrastructure and delivering innovative solutions to our customers, this additional investment will enable us to build on our recent successes and further strengthen our position as a leader in the data center and digital infrastructure industry.”
-Chris Downie, CEO of Flexential
