Mergers and Acquisitions

King Street Capital Acquires Data Center Operator Colovore

Private equity firm King Street Capital Management has acquired data center operator Colovore for an undisclosed sum.

The Silicon Valley-based Colovore specializes in liquid-cooled, high-density colocation for artificial intelligence (AI) and high-performance computing (HPC).

This is technology M&A deal number 136 that ChannelE2E and MSSP Alert have covered so far in 2024. See more than 2,000 technology M&A deals for 2024, 2023, 2022, 2021, and 2020 listed here.

King Street Capital Management, founded in 1995, is based in New York City. The firm has 222 employees listed on LinkedIn. King Street’s areas of expertise include credit, restructurings, bankruptcies, rescue financings, corporate and asset-based lending, structured credit, real estate, event-driven situations.

Colovore, founded in 2012, is based in Santa Clara, CA. The company has 12 employees listed on LinkedIn. Colovore’s areas of expertise include liquid-cooled data centers, high-density colocation, and AI and HPC infrastructure support.

Expansion Plans

For King Street, the acquisition is a strategic move. The firm says it aims to leverage its real estate platform to support Colovore's growth in response to increased demand for liquid-cooled data center solutions. 

"King Street's data center investment platform is an extension of the Firm's thematic approach to global real estate investing. We bring a comprehensive and differentiated perspective to the data center industry," said Mark Van Zandt, co-head of Real Estate, King Street.

"Colovore is uniquely positioned to meet the needs of these high-density customers, with a business focused exclusively on liquid-cooled data centers," said Brian Higgins, Co-Founder and Managing Partner of King Street.

With existing locations in Santa Clara, California, and Nevada, Colovore says it plans to expand into additional Tier 1 markets across the country under King Street's backing.

DH Capital, a division of Citizens, served as exclusive financial advisor to Colovore. Kirkland & Ellis LLP served as legal advisor to King Street.