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Bain Capital sells China data center business to Chinese consortium at $3.9 billion

The companies announced that U.S. investment company Bain Capital had agreed to sell the China operations of data centre operator WinTriX DC Group to a consortium headed by Guangdong Hec Technology, for 28 billion Yuan ($3.93billion).

Hec Technology, its controlling shareholder, and a subsidiary will increase capital by 7.5 billion Yuan in a joint-venture to partially finance the deal.

Bain Capital announced in a separate press release that institutional investors and funds from local governments are also included in the consortium.

In a filing, Hec Technology said that the acquisition would help it expand its data centre business as well as strengthen its core competitiveness within the digital infrastructure industry chain.

In 2019, Bain Capital acquired WinTriX DC Group (formerly known as Chindata Group Holdings) and merged with Southeast Asia Data Centre operator Bridge Data Centres.

Bain Capital acquired Nasdaq listed Chindata in a $3.16 Billion deal nearly two years ago.

WinTriX's largest customer is social media giant ByteDance, according to Fitch Ratings. ByteDance contributed 86% of WinTriX's revenue in 2022.

It also has data centres in India, and Malaysia. Reporting by Yukun Zhi, Kane Wu, and Ryan Woo, Editing by Joe Bavier and Kirby Donovan

(source: Reuters)