Cyxtera Wins Bankruptcy Court Clearance for Brookfield Acquisition and Restructuring Plan

Strategic partnership with Brookfield Infrastructure Partners positions Cyxtera for accelerated growth and enhanced operational capabilities

The U.S. Bankruptcy Court for the District of New Jersey has officially cleared the path for Cyxtera’s transformation, approving the company’s sale to Brookfield Infrastructure Partners L.P. (NYSE: BIP, TSX: BIP.UN) and its institutional co-investors. This milestone also confirms Cyxtera’s Plan of Reorganization, marking a pivotal moment for the global data center operator.

The deal fundamentally reshapes Cyxtera’s future. Chief Executive Officer Nelson Fonseca underscored the significance: “This approval represents a critical turning point. Brookfield’s backing brings not only capital injection but also decades of infrastructure management expertise. The data center sector continues to experience strong demand signals, and we’re positioned to capitalize on expansion opportunities that our customers desperately need.”

What the Acquisition Means for Operations

Under the asset purchase agreement signed on November 1, 2023, Brookfield will acquire substantially all of Cyxtera’s assets. Beyond the core business acquisition, Brookfield’s partners have also stepped in to purchase real estate underlying seven U.S. data center facilities—a move that decouples real estate ownership from operational control and creates financial flexibility.

The restructuring extends beyond acquisition mechanics. Cyxtera has successfully renegotiated lease terms across three domestic and three international locations, securing exit rights effective 2024. This portfolio optimization allows the company to shed underperforming assets while concentrating resources on high-demand markets. Combined, these moves reshape Cyxtera’s footprint into a leaner, more strategic platform.

Transition Timeline and Next Steps

Assuming regulatory authorities grant necessary approvals and standard closing conditions are satisfied, Cyxtera expects to emerge from court supervision during the first quarter of 2024. The company is committed to maintaining operational continuity throughout the transition, prioritizing stakeholder confidence during this sensitive period.

“We’re acutely aware that our customers, partners, and employees are watching closely,” Fonseca added. “Our job is to ensure this transition unfolds smoothly, and our teams are laser-focused on that objective.”

The Breadth of Expert Guidance

The transaction has attracted significant professional attention. Kirkland & Ellis LLP advises Cyxtera on legal matters, while Guggenheim Securities and AlixPartners provide financial and restructuring guidance respectively. On Brookfield’s side, Paul, Weiss, Rifkind, Wharton & Garrison LLP manages legal strategy. Wells Fargo and TD Securities serve as joint financial advisors for the real estate components and broader transaction financing.

About Cyxtera

Cyxtera operates as a premier global provider of colocation, interconnection infrastructure, and digital real estate solutions. With enterprise IT environments growing increasingly complex and distributed, the company has evolved its platform to deliver cloud-native flexibility across a network of interconnected facilities. The company currently serves over 2,300 enterprise and government clients worldwide, enabling them to scale infrastructure efficiently, meet financial objectives, and maintain competitive positioning.