Private equity-backed data center provider Cyxtera Technologies Inc said on Monday it has agreed to go public through a merger with a blank-check firm backed by shareholder activist Starboard Value LP, in a deal valuing the combined entity at $3.4 billion. As part of the deal with Starboard Value Acquisition Corp, Cyxtera will receive $654 million, including $250 million from private investors such as Fidelity Management & Research Company LLC and clients of Starboard. Miami, Florida-based Cyxtera is a provider of co-location services, which allows companies to keep their privately-owned servers and networking equipment in a third-party data center, such as ones owned by Cyxtera. Cyxtera operates around 61 data centers across the globe and counts nearly 2,300 organizations among its customers, according to its website. The company is backed by private equity firm BC Partners and Medina Capital. Starboard Value Acquisition, a special purpose acquisition company (SPAC), is sponsored by an affiliate of Starboard Value LP, a New York-based hedge fund led by Jeff Smith. SPACs, which are shell companies that raise money through an initial public offering to take a private company public, have emerged as one of Wall Street’s most popular investment vehicles over the past year. Cyxtera will be listed on the Nasdaq under the new ticker symbol “CYXT” after the merger. Citi was the lead financial advisor to Cyxtera. Morgan Stanley also advised Cyxtera, while J.P. Morgan served as financial advisor to Cyxtera and BC Partners.