LONDON, UK: Cordiant Digital Infrastructure Limited has entered into binding agreements to acquire a strategic interconnect data centre in New York and a multi-asset digital infrastructure platform in Poland.
Cordiant Digital (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 for a consideration of $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 $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.
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.
The company also signed a binding agreement with the shareholder of Emitel S.A. 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.”
Emitel is a national champion, operating network assets across Poland. It is the sole national provider of digital terrestrial television (“DTT”), the leading radio broadcast emissions provider and a leading provider of network neutral towers and fibre infrastructure in Poland and benefits from long-term contracts, averaging 10 years, with escalator clauses.
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.”
Steven Marshall, Chairman Digital Infrastructure, Cordiant Capital commented: “Emitel is a true multi-asset platform offering an attractive mix of scale, cash flow, growth and diversification. The purchase price represents an EV/EBITDA multiple of less than 10 times forward earnings. We recognise Emitel’s important role in providing critical digital infrastructure in Poland, including the development of national 5G infrastructure.
We are committed to invest to build the broadcast infrastructure capacity over the next 18 months in line with our ‘buy, build & grow’ philosophy. We applaud what the management and employees of this national champion have built to date, and look forward to working with Emitel to capture future opportunities for investment, growth and profit.”
Cordiant Digital Infrastructure Limited primarily invests in the core infrastructure of the digital economy – data centres, fibreoptic networks and broadcast and telecommunication towers – “the plumbing of the internet” – in the UK, Europe and North America. www.cordiantdigitaltrust.com