Alphabet to acquire Intersect for $4.75B in cash plus assumption of debt

Alphabet (GOOG) (GOOGL) announced a definitive agreement to acquire Intersect, which provides data center and energy infrastructure solutions, for $4.75B in cash, plus the assumption of debt. “Google already owns a minority stake in Intersect from a previously announced funding round. The acquisition will enable more data center and generation capacity to come online, faster, while accelerating energy development and innovation. Included in the transaction are Intersect’s world-class team and multiple gigawatts of energy and data center projects in development, or under construction, from its successful existing partnership with Google. Intersect will also explore a range of emerging technologies to increase and diversify energy supply, while supporting Google’s U.S. data center investments to meet its Cloud customers’ and users’ demand. Intersect’s operations will remain separate from Alphabet and Google under the Intersect brand and will be led by Sheldon Kimber. It will partner closely with Google’s technical infrastructure team, continuing work on in-development, and new, joint projects; this includes the companies’ first announced co-located data center and power site, under construction in Haskell County, Texas. Intersect’s existing operating assets in Texas, and its operating and in-development assets in California, will not be part of the acquisition. Those assets continue to operate as an independent company, supported by existing investors TPG Rise Climate, Climate Adaptive Infrastructure, and Greenbelt Capital Partners. Intersect expects a seamless transition and service continuity for customers of those assets,” Alphabet stated.