Colony Capital's $325 Million Digital Bridge Acquisition Marks Major Pivot Toward Digital Infrastructure

Colony Capital has completed a transformative acquisition, bringing Digital Bridge Holdings into its fold for $325 million. This strategic move represents a fundamental repositioning of the investment firm, signaling a deliberate shift from traditional real estate toward the intersection of digital assets and infrastructure—a space Colony Capital believes will define the next decade of value creation.

The transaction restructures Colony Capital’s portfolio into a powerhouse managing approximately $60 billion in assets post-deal. At its core, this represents a bet that the real estate sector itself is undergoing profound change. As the world transitions from experience-driven to data-driven economics, brick-and-mortar properties with long-term tenant contracts face obsolescence unless they adapt to emerging technologies like 5G networks, last-mile delivery infrastructure, and interconnected device ecosystems.

Strategic Rationale: Connect, Connect, Connect

The driving thesis behind this acquisition centers on a simple but powerful premise: location matters less than connectivity. Digital Bridge, under the leadership of Marc Ganzi and Ben Jenkins, has amassed a formidable portfolio spanning 342,000 sites and 39 data centers globally. The firm manages nearly $20 billion in digital infrastructure assets, positioning it as a dominant player in wireless towers, data centers, fiber networks, and small cell installations.

Colony Capital’s integration of Digital Bridge creates a comprehensive platform encompassing communications infrastructure, listed securities products with algorithmic models, artificial intelligence applications, digital credit, smart logistics, private equity and emerging markets strategies. The synergy enables the combined entity to capitalize on what both organizations view as inevitable: the exponential growth in data transmission, cloud computing adoption, and IoT deployment over the coming years.

Leadership Transition: Marc Ganzi Steps Into the Spotlight

Complementing the acquisition is a carefully orchestrated leadership succession. Marc Ganzi, who built Global Tower Partners from inception in 2003 into America’s largest privately-held tower company before its $4.8 billion sale to American Tower Corporation in 2013, will assume the CEO role at Colony Capital following a transition period of 18 to 24 months.

Thomas J. Barrack Jr., Colony Capital’s executive chairman and current CEO, will transition back to executive chairman once Ganzi assumes command. This succession plan reflects confidence in Ganzi’s vision for digital infrastructure and his proven track record as an entrepreneur and operator. Barrack’s return to a strategic oversight role positions him to guide the company’s broader evolution while Ganzi drives execution on the digital-first agenda.

Digital Colony Partners: The Foundation

This acquisition follows the May 2019 close of Digital Colony Partners, a $4.05 billion institutional fund—the largest of its kind focused exclusively on digital infrastructure. Digital Colony has already deployed capital into four primary investments: Andean Telecom Partners (wireless infrastructure across Colombia, Peru, and Chile), Digita Oy (broadcast towers and telecom infrastructure in Finland), Freshwave Group (UK-based small cell and tower platform), and Peer 1 (Canadian colocation and connectivity provider). Additionally, the fund has entered into an agreement with EQT Infrastructure to acquire Zayo Group Holdings, expanding bandwidth infrastructure coverage across North America and Europe.

Financial Structure and Terms

The transaction is structured as two-thirds cash and one-third limited partnership units in Colony Capital’s operating partnership, with a lock-up period burning away ratably over three years. Approximately 10% of consideration is deferred pending completion of Digital Bridge’s 2019 audited financials and customary indemnification periods. OP units were priced at $5.04 based on 30-day volume-weighted average calculations.

Marc Ganzi secured a sign-on award of 10 million OP units contingent upon Colony Capital shares closing above $10 for 90 consecutive trading days within five years, subject to continued employment. Both Ganzi and Jenkins entered multi-year employment agreements, with Ganzi’s commitment spanning five years.

Execution and Strategic Direction

Colony Capital intends to execute on several concurrent priorities: accelerating digital platform growth, reducing corporate overhead, monetizing non-core hospitality and healthcare assets through sales or joint ventures, maintaining REIT status and dividend sustainability, and continuing to derisk the overall portfolio. The combined organization believes this concentrated focus on digitally-driven infrastructure will generate substantial shareholder value while positioning it ahead of industry trends as connectivity demands accelerate globally.