LONDON - Cordiant Digital Infrastructure Limited ("CORD"), a digital infrastructure investment firm, has announced a partnership with TINC NV and another Cordiant-managed fund to acquire significant stakes in two Belgian data centre businesses. The transaction involves acquiring a 47.5% economic interest in the combined operations of DCU Invest NV ("Datacenter United" or "DCU") and the data centre business of Proximus Group, for a total equity consideration of €92.3 million.
DCU, a Tier III/IV data centre operator with nine locations in Belgium, will be partially acquired by CORD and its partners from TINC and DCU's CEO, Friso Haringsma. The enterprise value for DCU is €72.5 million. After the transaction, TINC will retain a similar stake, and Haringsma will hold a 5% non-voting share. The capital from this deal will fund DCU's purchase of Proximus Group's data centre business, valued at €128 million.
The combined entity, referred to as the "Combined Group," will have a pro forma IT power capacity of 13MW, with revenues of approximately €40.3 million and EBITDA of €15.1 million for the year 2023. The group also has the potential to expand its capacity by an additional 11.1MW.
Proximus Group has agreed to a long-term master services agreement with the Combined Group, ensuring that it will use 37% of the group's IT power capacity. The Combined Group boasts a current capacity utilization of about 80%, serving various blue-chip corporates and government bodies.
The acquisitions are subject to regulatory approvals and are expected to be finalized early in the first quarter of 2025. Cordiant's investment in the Combined Group will be financed through Eurobond facilities established in June 2024. The company's net gearing ratio post-transaction is projected to be 42.1%, with an aggregate annual EBITDA, including the share of the Combined Group, of £138.7 million.
Additionally, an agreement in principle has been reached for a separately managed fund to invest €20 million alongside CORD in the transaction, which would adjust CORD's indirect shareholding in the Combined Group to 37.2%.
Shonaid Jemmett-Page, Chairman of CORD, expressed optimism about creating a market-leading data centre business in Belgium and the potential for further EBITDA and NAV growth. Steven Marshall and Benn Mikula of Cordiant Digital Infrastructure Management highlighted the strategic alignment with TINC and the transaction's demonstration of Cordiant's operational expertise in data centres.
This information is based on a press release statement.
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