5 January 2022
Cordiant Digital Infrastructure Limited
Acquisition of two strategic digital infrastructure investments
Cordiant Digital Infrastructure Limited (the “Company”) is pleased to announce that the group has entered into binding agreements to acquire a strategic interconnect data centre in New York and a multi-asset digital infrastructure platform in Poland, thereby fully committing all available capital within the Ordinary and C Share classes.
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 (“DataGryd“) for a consideration of US$741 million. The DataGryd acquisition will be fully funded from the Company's available cash resources. These assets will constitute a data centre operating platform in the U.S. that will operate under a new brand name reflective of both its strategic positioning and significant growth potential in this important interconnect market. More than half of DataGryd's existing footprint is leased to blue chip customers. It is anticipated that an additional US$75 million of expansion capital will be invested in this interconnect platform over the coming three years. The acquisition is subject to landlord's lender consent.
The Company is also pleased to announce that it has (via its wholly-owned subsidiary) signed a binding agreement with the shareholder of Emitel S.A. (“Emitel“) to acquire this multi-asset digital infrastructure business for an equity consideration of £352 million. Based in Warsaw, Emitel operates over 500 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 acquisition will be funded through a combination of available cash resources and, if applicable, backstop vendor financing.
On a pro forma basis, these transactions, together with CRA, would have generated an estimated £95 million of EBITDA in 2021; this portfolio combining stable cash flows and attractive growth opportunities will have been acquired at a multiple of less than 12x.
Shonaid Jemmett-Page, Chairman of Cordiant Digital Infrastructure Limited , commented:
“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.”
Further Information about the DataGryd Assets
DataGryd currently operates from the 60 Hudson building in the Tribeca neighbourhood of New York City. This landmark art deco skyscraper has organically grown into one of the most concentrated hubs of internet connectivity available for use by third parties within New York City; over 300 carriers and internet firms interconnect in this location. The location has strategic value within New York City, which functions as a digital crossroads for the most critical corporate, government, entertainment and education data traversing the Internet.
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.
The various underlying customers of interconnect data centres tend to be large and sophisticated organisations such as global banks, major media and internet firms, content delivery networks, large software-as-a-service companies and major wireless and wireline telecoms operators. Current tenants and sub-tenants of the platform include well-known names in the Internet, media and finance sectors.
Benn Mikula, Managing Partner and Co-CEO, Cordiant Capital commented:
“The DataGryd platform offers our investors a compelling investment opportunity to invest in interconnect datacentres and we are delighted to add this platform to our portfolio. This platform can deliver scale, high quality infrastructure, power and technical skill in what we believe is the most connected building in the most connected city globally. These are strategic assets with significant growth potential.”
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.”