Blackstone, an investment firm, made a 150 million investment in 21Vianet, according to 21Vianet Group’s announcement. With this investment, Blackstone will become one of the Company’s largest institutional stockholders.
To further digital transformation
21Vianet provides hosting and related services, including IDC services, cloud services, and business VPN services. The customers of 21Vianet have the opportunity to locate their servers and equipment in 21Vianet’s data centers and connect to China’s Internet backbone. The company plans to use this investment to reinforce its position in China’s hyper-growth data center market.
Josh Chen, the Founder and Executive Chairman, 21Vianet, said,
“We are delighted to welcome Blackstone, one of the world’s leading investment firms, to partner with us to fuel our next phase of growth. This investment is a valuable vote of confidence in the strategy being pursued by our team. Blackstone’s experience, connections and knowledge of the data center sector globally will help us embrace new infrastructure and digital transformation opportunities to better serve our customers.”
According to the agreement, the investors will subscribe US$150 million newly issued Series A perpetual preferred shares. Moreover, 21Vianet will have the right to trigger a mandatory conversion at its election, if its ADSs achieve a specified price threshold at 200% of the conversion price for a specified period.