Cordiant Digital Infrastructure Ltd (LSE:CORD)'s Czech portfolio company České Radiokomunikace (CRA) has acquired two notable businesses in the data centre and cloud-services sector: Cloud4com and DC Lužice.
Billed as a strategic advancement in CRA's presence in the burgeoning Czech data services market, the acquisitions also align with Cordiant's ‘Buy Build and Grow’ business model.
Cloud4com, recognised as a leading cloud services provider in the Czech Republic, is set to be acquired for an initial consideration of 870 million Czech koruna (CZK) (£30.7 million), with a further amount payable up to a maximum of CZK485 million, depending on Cloud4com's2024 earnings performance.
Tier-III data centre DC Lužice is being acquired for CZK130 million, also subject to customary adjustments.
Cloud4com's financial forecast projects a revenue of CZK155 million and an EBITDA of CZK44.6 million, while DC Lužice boasts 85 racks and a 32% utilisation rate, and offers significant growth potential given its location and recent renovations.
Expected to close next month, this acquisitions are being funded by CRA from its existing cash resources with no financing required from the company.
Steven Marshall, chairman of Cordiant Digital Infrastructure Management, stated: "We are delighted to have agreed to acquire these attractive data centre assets which are being funded by organic cash flow at CRA.
“These transactions are highly complementary to CRA's existing data centre and cloud businesses, enhancing CRA's market leading position in its respective areas of operations and further demonstrating our active management approach through our 'Buy Build and Grow' strategy."
Benn Mikula, chief executive of Cordiant Capital, added: "These acquisitions mark an important step in CRA's continued growth in the Czech data centre and cloud services market. They add capabilities and capacity to an already strong team.
“This market segment is increasingly important to CRA's revenue mix."
While Miloš Mastník, chief executive of CRA, had this to say: "These transactions are an important milestone for CRA as we continue to diversify our operations into high growth areas such as data centres and cloud services.
“Cloud4com has achieved a leading market position in the Czech Republic and we see a clear strategic fit and synergistic value in adding Cloud4com and DC Lužice to CRA.
“We expect these assets to contribute strong revenue growth going forward and we anticipate capturing margin expansion due to increasing operating leverage.”