Digital Colony Management, LLC, a global digital infrastructure investment firm, announced this week that affiliates of Digital Colony have entered into a definitive agreement to acquire Landmark Dividend LLC, a real estate and infrastructure acquisition and development company.
Landmark owns 100% of the membership interests in Landmark Infrastructure Partners LP (LMRK) and 13.2% of the common units representing limited partner interests in LMRK.
Digital Colony has informed Landmark Dividend that subject to the acquisition’s completion, it plans to submit a proposal to LMRK’s board of directors to acquire substantially all of its assets. If this acquisition is finalized it would result in the payment of $13.00 per common unit in cash to LMRK’s unaffiliated unit holders. The transaction would value LMRK at approximately $972 million. Digital Colony expects that the conflicts committee of the LMRK Board would review the LMRK Acquisition Proposal.
Digital Colony has also informed Landmark that when the acquisition is completed, it intends to continue the company’s current strategy of not pursuing additional drop-down acquisitions to LMRK. Digital Colony would also evaluate LMRK’s distribution policy so it can maintain reserves sufficient to provide for the proper conduct of LMRK’s business.
“The acquisition of LD is our first strategic step to secure a stronger future for LD and its various affiliated entities, including LMRK,” Digital Colony Senior Managing Director Steven M. Sonnenstein said in a statement. “We look forward to working with the LD team to advance our shared mission of acquiring and managing critical digital infrastructure assets that deliver quick, reliable and responsive service for customers.”
“As a recognized leader in the digital infrastructure space with a proven track record, we believe the Digital Colony team’s expertise is crucial to advancing our strategy in today’s rapidly evolving market,” Landmark Dividend CEO Tim Brazy said. “We are confident this acquisition by Digital Colony will position us to accelerate our pursuit of strategic consolidation in our fragmented industry and drive growth over the long-term.”
The transaction is expected to close within several weeks, subject to customary closing conditions. TAP Advisors is serving as financial advisor to Digital Colony, and Simpson Thacher & Bartlett LLP is serving as legal advisor to Digital Colony. RBC Capital Markets, LLC is serving as exclusive financial advisor to LD, Latham & Watkins LLP is serving as legal advisor to LD, and Regions Securities LLC, as LD’s existing financing bank, is supporting the transaction.
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