Brookfield, DigitalBridge in $5.5 billion-plus bidding war for Compass Datacenters: sources

Brookfield Infrastructure Partners LP and DigitalBridge Group Inc are battling it out in the race to acquire Compass Datacenters LLC for more than $5.5 billion, including debt, according to people familiar with the matter.

Brookfield and DigitalBridge are leading opposing bidding consortia in the auction for privately held Compass, the sources said, adding an outcome is expected by next month.

The terms of Compass’ debt allow for it to be taken over by a new owner without it being refinanced, one of the sources said. This is making the deal easier to complete at a time when high interest rates and market volatility have made debt for leveraged buyouts scarcer and more expensive.