SerpApi.Org
Data-center operator TECfusions is planning to go public by merging with a blank-check company in a deal that will value it at about $4 billion.
The Florida-based company, which hosts one of the largest AMD-based artificial-intelligence training clusters in North America, is set to combine with Apex Treasury, a special-purpose acquisition company listed in New York, it said Wednesday.
The company expects to close the transaction in the fourth quarter and start trading on the Nasdaq, subject to shareholder and regulatory approvals.
TECfusions, which converts existing industrial facilities into data centers, said the deal implies a pro-forma enterprise value of approximately $4.2 billion. The valuation reflects contracted and advanced-stage projects, a planned expansion into Chile, and long-term customer agreements.
An institutional investor is anchoring a $35 million PIPE, or private investment in public equity, alongside the de-SPAC transaction. TECfusions declined to identify the investor.
Simon Tusha, founder and chief technology officer at TECfusions, said the company chose the SPAC route over a conventional initial public offering in part due to the current market environment.
“The recent volatility in equity markets and the broader macro backdrop reinforced our view that a SPAC provides better predictability around timing and capital, which is critical when you are committing hundreds of millions of dollars to multi year data center projects,” he said.
TECfusions has sites in Virginia, Pennsylvania and Arizona, with its current pipeline supporting a multi-gigawatt buildout over the next several years, Tusha said.
He added that the company’s near-term financials reflect a “build-out phase rather than steady-state margins,” with a clear path toward significant profitability as projects move from construction into full utilization.
The company is in talks with a range of AI platforms, cloud providers and enterprises as potential clients.
While TECfusions isn’t planning a SPAC raise beyond the $35 million investment, it may consider future capital raises, Tusha said. The firm is currently financed through project-level debt and equity, corporate equity commitments, and strategic capital from partners seeking exposure to AI-ready infrastructure.
“Over the next 12 to 18 months, our [capital expenditure] will remain focused on high conviction projects where we have clear tenant demand and attractive project level financing, rather than speculative builds,” the CTO said.
Write to Kimberley Kao at [email protected]