Infratil has agreed to acquire a 48% shareholding in Canberra Data Centres for $392 million.
Subject to Foreign Investment Review Board approval, the sale is expected to be finalised in late July.
“The acquisition of CDC provides Infratil with a meaningful exposure to the emerging data and related telecommunications infrastructure sector, which we have been following for some time,” Infratil chief executive Marko Bogoievski said on Thursday.
“Over the past eight years, CDC has successfully grown to become the leading provider of outsourced data centre services in Canberra and a trusted partner to numerous federal government agencies and private sector customers. Through its customised, modular design, CDC is able to offer highly secure and flexible data centre solutions to its customers.”
The sale represents another windfall for Canberra Data Centres, which sold a 45 per cent stake in its business to Sydney-based private equity firm Quadrant for $140 million in late 2014.
CDC is currently owned by funds associated with Quadrant, the founders and management.
Under the new arrangements, Infratil’s investment of 48% is matched by Commonwealth Superannuation Corporation and alongside the CDC executive (4%).
CDC has experienced strong recent growth and has a number of growth opportunities under way, including construction of its fourth data centre, Hume 3.
The current annualised run rate of earnings before interest, taxes, depreciation and amortization (EBITDA) is estimated at $50 million, with strong anticipated growth of around 30 per cent until June 2017 as the business fills existing capacity and commissions Hume 3.
“The business currently has ~30MW of capacity split across three facilities, and two data centre campuses, with two high quality greenfield development opportunities underway totalling another ~27MW of capacity,” Bogoievski said.
“With the support of Infratil the business is better positioned than ever to grow in support of its customers over the long term.”
Infratil and Commonwealth Superannuation Corporation will have 50/50 governance rights with Greg Boorer, CDC’s founder and chief executive, continuing on the board.