Cyxtera-SVAC Merger Complete, Company Now Publicly Traded

Cyxtera has completed its merger with Starboard Value Acquisition Corp. (SVAC) and on Friday began trading on the Nasdaq stock exchange.

Cyxtera announced the merger in February. The company is trading under the ticker symbol “CYXTW.”

The combined company is the third-largest publicly held global provider of retail colocation and interconnection services. It has 61 data centers in 29 markets around the world. Furthermore, it serves more than 2,300 enterprises, service providers and government agencies.

Cyxtera’s Nicholas Voth

Nicholas Voth is Cyxtera‘s vice president of global channel strategy and sales.

“The completion of the merger with SVAC, and transitioning to be a publicly traded company, is a significant milestone for Cyxtera,” he said. “The proceeds from the business combination will provide funding for growth initiatives that will allow us to enhance our offerings and the solutions we bring to market along with our partners.”

Going public provides access to new capital sources, Voth said. That will help Cyxtera accelerate product innovation and further invest in its strategic go-to-market efforts.

“Our partners will benefit in a meaningful way as we continue to work with partners to identify customer needs and to evolve our solutions to meet those needs,” he said. “Cyxtera has achieved strong growth over the last several quarters. And the development of our partner programs have played a critical role in our overall performance. We anticipate that this growth will continue in the months ahead with partners increasingly contributing more to our results.”

Positive Feedback From Partners

The feedback from Cyxtera’s partner community has been “incredibly positive,” Voth said.

“Partners across all of our routes to market have voiced their excitement for what this merger will mean for Cyxtera, our brand, and their ability to work alongside us to drive customer success in the market,” he said.

The company received about $493 million in total cash from the transaction before fees, expenses and debt amortization. It will use the transaction proceeds partially to retire company debt. It will also provide incremental cash for growth, as well as to pay transaction expenses.

Nelson Fonseca is Cyxtera’s president and CEO.

“Cyxtera’s team has built a differentiated global data center platform that is well positioned to deliver the innovative solutions our customers require to meet their evolving infrastructure needs,” he said. “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. We look forward to leveraging our data center platform and our experience in successfully operating a publicly traded data center company to create long-term shareholder value.”