Bain Capital to take Chinese data center operator Chindata private - PingWest

Bain Capital to take Chinese data center operator Chindata private

Bain Capital to take Chinese data center operator Chindata private

5 hours ago

Chinese data center operator, Chindata Group, announced on Wednesday that it has received a privatization offer from Bain Capital, valuing the company at $2.93 billion.

Founded in 2009 by Alex Ju Jing, Chindata Group went public on Nasdaq on Sept. 17, 2020, successfully raising $540 million through an IPO. The company's stock is traded under the symbol "CD."

At the time of its listing, Chindata Group derived over 81% of its revenue from services provided to ByteDance, the parent company of the viral short video platform TikTok. Additionally, Chindata boasts prominent clients such as Alibaba and Tencent.

Chindata has established itself as a top provider of hyperscale and on-premises data centers in China and Southeast Asia. 

It operates a robust network of over 17 data centers spanning across China, Malaysia, and Thailand. Its international facilities are managed by its subsidiary, Bridge Data Centres, which is also in the process of constructing a new data center in India.

In 2019, Bain acquired Chindata from Wangsu Science & Technology Co. and subsequently merged it with its existing portfolio company, Bridge Data Centres. As of now, Bain retains ownership of approximately 42% of Chindata.

According to Chindata, its Q4 revenue in 2022 jumped to 1.39 billion yuan ($195 million), a year-on-year increase of 78%, and its adjusted EBITDA increased to 720 million yuan, a year-on-year increase of 78%.

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