Cordiant Digital Infrastructure Ltd (LSE:CORD) has landed deals to acquire and consolidate two data centre businesses in Belgium.
As a result, it aims to create a market-leading retail and wholesale data centre business.
A partnership – between CORD, TINC NV and a separate Cordiant-managed fund – is acquiring and combining Belgian firms Datacenter United (DCU) and Proximus Group’s data centre business (PDC).
CORD and a Cordiant-managed fund will invest €92.30 million for a 47.50% stake in the new business.
Forecast financials for the new business see proforma revenue of around €40 million per year, driving €15 million of earnings (EBITDA).
Together, the new business will comprise nine data centres owned by DCU and four centres owned by Proximus. A parallel licence deal gives Proximus access to use a portion of the data centre capacity over a ten year period.
“By bringing these businesses together, there is the opportunity to create a market-leading retail and wholesale data centre business in this attractive geography,” Cordiant chair Shonaid Jemmett-Page said in a statement.
“These acquisitions further diversify the company's portfolio, provide an opportunity for co-investment and also provide the potential for further EBITDA and NAV growth through the build-out and sale of the combined business' remaining space and power following closing."
Steven Marshall and Benn Mikula, Cordiant Digital Infrastructure Management co-founders, together in the statement, said: "We are delighted to be working with TINC, who, as a long-term investor, shares a common strategic vision for this business and will be able to co-invest alongside the company in the further expansion of the facilities.
“The acquisition provides a good foundation for the manager's value creation plan for these assets.
“The transaction shows the manager's operational data centre expertise and ability to source transactions that meet its demanding criteria for capital deployment."
The transaction, subject to regulatory approval, is expected to be completed early in the first quarter of 2025.