Blackstone to buy Australia's AirTrunk in $16 billion deal

Blackstone will buy Australian data centre group AirTrunk for an implied enterprise value of over A$24 billion ($16.10 billion), it said on Wednesday, in what would be Blackstone's largest investment in the Asia Pacific region.

The alternative asset manager, along with the Canada Pension Plan Investment Board, is acquiring AirTrunk from Macquarie Asset Management (MAM) and the Public Sector Pension Investment Board (PSP).

The transaction needs approval from the Australian Foreign Investment Review Board (FIRB), given the asset is being bought by overseas parties.


At $16.1 billion, the deal is the largest buyout in Australia this year and one of the biggest in recent history.

AirTrunk, which was founded in Sydney, is considered the largest data centre group in Asia Pacific, with 11 sites in Australia, Japan, Malaysia, Hong Kong and Singapore.

It was owned 88% by MAM and Canada's PSP which have now sold their entire stake, according to a statement from the two companies.

AirTrunk founder and chief executive Robin Khuda will retain a stake, the statement said, without specifying the size of his remaining shareholding.

"AirTrunk is another vital step as Blackstone seeks to be the leading digital infrastructure investor in the world across the ecosystem, including data centers, power and related services," Blackstone president Jon Gray said in a statement.

Blackstone and CPP Investments beat out a consortium led by IFM Investors which also bid for AirTrunk, Reuters reported on Aug. 28.

Reuters reported on Monday the Blackstone led group was nearing a deal to win control of AirTrunk.