Data center colocation services provider Cyxtera Technologies will start trading Friday on Nasdaq after it completed its merger with blank check company Starboard Value Acquisition Corp. (Nasdaq: SVAC).
Both parties first announced the $3.4 billion merger deal in February and Cyxtera said Thursday SVAC’s stockholders approved the combination during a special meeting Wednesday, resulting in a total cash payment of approximately $493 million to 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,” said Nelson Fonseca, president and CEO of Cyxtera.
Fonseca, who will continue to oversee Cyxtera as CEO, added the company looks forward to using its data center platform and experience to build shareholder value over the long term by running a publicly traded data center company.
Cyxtera Chairman Manuel Medina, Chief Operating Officer Randy Rowland and Chief Financial Officer Carlos Sagasta will hold the same roles at the combined organization.
Medina, who is also founder and managing partner of Medina Capital, and Fonseca will respectively serve as chair and a member of the combined entity’s board of directors. Other members of Cyxtera’s board are Raymond Svider, chairman and a partner of BC Partners; Fahim Ahmed, a partner at BC Partners; John Diercksen; former SVAC director Michelle Felman; and Melissa Hathaway.
A consortium composed of BC Partners, Medina Capital Advisors and Longview Asset Management established Cyxtera in 2017 as a result of the acquisition of CenturyLink’s data centers and colocation business.
Cyxtera will list its common stock under the ticker symbol “CYXT” and warrants under “CYXTW.”
The new publicly traded company will use proceeds from the merger deal to provide cash for growth efforts, pay transaction expenses and partially retire debt.