Key facts
- TECfusions Inc. will merge with Apex Treasury Corp., a SPAC.
- The combined company will have a valuation of $4 billion.
- The deal is expected to close by the end of the year.
- An institutional investor will provide $35 million in private investment in public equity (PIPE) funds.
- TECfusions operates data centers in Virginia, Pennsylvania, and Arizona.
TECfusions Inc., a Florida-based company specializing in converting industrial facilities into data centers, has agreed to merge with Apex Treasury Corp., a special purpose acquisition company (SPAC), in a deal that values the combined entity at $4 billion. This move signals a return of digital infrastructure companies to the public markets.
The $4 billion valuation encompasses planned and advanced projects, an anticipated expansion into Chile, and existing long-term customer agreements. TECfusions currently operates data centers in Virginia, Pennsylvania, and Arizona.
The transaction is supported by an undisclosed institutional investor committed to providing $35 million in private investment in public equity (PIPE) funds at $10 per share. Simon Tusha, founder of TECfusions, stated that becoming a public company will provide access to capital markets, enabling accelerated development, expansion into new markets, and the building of an AI economy infrastructure platform.
Apex Treasury, based in Vero Beach, Florida, is backed by UK investors, including former Merrill Lynch executive Ajmal Rahman and crypto investor Hugh Cochrane. Following the news, Apex Treasury's stock saw a moderate increase of nearly a dollar on the Nasdaq.
TECfusions opted for a SPAC merger over a traditional IPO, citing greater predictability amid current equity market volatility. This strategy comes after recent challenges for other data center companies, such as Brookfield-backed Csquare missing its IPO capital target. The trend of data center companies going public is re-emerging after a lull in 2021 and 2022, with companies like Switch and SBEnergy also signaling IPO intentions. Blackstone Digital Infrastructure Trust successfully went public in May, raising $1.75 billion.