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Transactions in the US and Europe are set to require further capital to build the businesses out and expand their respective market reach.
Founder and Editor, The Tech Capital
January 12, 2022 | 8:18 PM GMT
Cordiant Digital Infrastructure (LON: CORD) has entered into binding agreements to acquire a strategic interconnect data centre in New York and a multi-asset digital infrastructure platform in Poland for a combined US$554 million.
Firstly, the company (via its wholly-owned subsidiary) has entered into a binding agreement to acquire certain assets constituting the full operational platform (and assumed certain operational liabilities) of DataGryd Datacenters LLC for a consideration of $74 million.
The DataGryd acquisition will be fully funded from the company’s cash resources. These assets will constitute a data centre operating platform in the US that will operate under a new brand name to be announced at a later stage.
More than half of DataGryd’s existing footprint is leased to blue-chip customers. It is anticipated that an additional $75 million of expansion capital will be invested in the business. The acquisition is subject to landlord’s lender consent.
DataGryd currently occupies c.170,000 sq ft of 60 Hudson (c.120,000 sq ft of high-quality raised floor data centre space and over 50,000 sq ft of additional support space) and the new platform will benefit from an option on an additional c.120,000 sq ft of raised floor data centre space. The platform has access to approximately 15MW of power, enabling it to provide its customers with attractive levels of power density.
Elsewhere, Cordiant said it has signed a binding agreement with the shareholder of Emitel S.A. to acquire the multi-asset digital infrastructure business for an equity consideration of £352 million ($480 million).
Based in Warsaw, Emitel operates 521 mobile towers, the national broadcast network, five digital terrestrial networks, a nationwide network of wireless “smart city” sensors serving utilities and a nationwide fibre network traversing tens of thousands of kilometres.
The acquisition is subject to regulatory and governmental approvals and financing confirmations at the Emitel level.
On completion, the transaction will be funded through a combination of available cash resources and, if applicable, backstop vendor financing, Cordiant said in a statement.
Shonaid Jemmett-Page, Chairman of Cordiant Digital Infrastructure Limited, said: “We are delighted to be announcing the agreement to acquire the DataGryd assets in the U.S. and Emitel in the EU.
“These acquisitions will, when completed, complement CRA, our existing portfolio company, and provide an attractive combination of highly cash generative operational assets with long-contracted revenue streams and compelling growth opportunities through building out the platforms.”
DataGryd’s CEO Thomas Brown, commented: “As a patient, well-funded and long-term investor with industry expertise, Cordiant Digital Infrastructure is ideally positioned to support us in our planned expansion to four floors of 60 Hudson (over 20% of the leasable space in the building) and beyond. This platform has the capabilities to become the leading player in this critical market segment. We look forward to working with the Cordiant Digital team to execute our business plan.”
Emitel’s CEO Andrzej J. Kowalski added: “In Cordiant Digital Infrastructure we have an investor bringing both a long investment horizon and significant industry expertise; as such it can deploy capital, insight and patience to support us in our medium- and long-term growth plans to expand from our current base to become an even more significant provider of outsourced digital infrastructure. We are excited as we look ahead to working with the Cordiant Digital team.”
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