SYDNEY, AUSTRALIA: DXN Limited has entered into a binding share and unit sale agreement to purchase 100% of Secure Data Centre (SDC) in Darwin, Northern Territory, for a purchase price of $4.6 million in cash and $200,000 worth of shares in DXN.
As part of the consideration for the transaction (in addition to the cash payment), the Vendors will receive 16,666,667 DXN shares at a deemed issue price of $0.012 per share, value of $200,000. $850,000 of the purchase price will be retained to cover any warranty claims associated with the acquisition.
Subject to any warranty claims, the retention amount will be paid one year after settlement.
DXN will also enter into an operating agreement with Paul and Tracey Grist (the operational vendors) for a period of three years to operate the Darwin data centre and provide continuity to existing policies and procedures in respect to staff, key contractors and other matters.
The Darwin data centre is the only continuously maintainable data centre in the Northern Territory of Australia. It has 70 racks occupied and the capacity to expand to 127 racks.
Secure Data Centre (SDC) is a data centre that provides services to the NT and Federal governments and a number of managed service providers, telecommunications and enterprise customers. Customer contracts have an average contract term greater than three years.
Matthew Madden, CEO of DXN, said: “the agreement is another example, following the acquisition of DC3 from TasmaNet in February 2020, of how DXN will deliver on its vision to develop and grow EDGE data centres. Our goal is to continue to expand our carrier-neutral Edge data centre footprint in Australia, the South Pacific and SE Asia. This is expected to include fully-owned facilities and facilities built or managed on behalf of third-party owners.”
Paul Grist, MD of Secure Data Centre (SDC), said: “the agreement with DXN helps us realise the potential for SDC. In connecting with a national and international network, SDC will become a gateway into the Northern Territory. We are really proud of what we have achieved but are very excited about the journey ahead”.
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9 Sep, 4:10 pm GMT+10 ·Disclaimer