Queensland Data Centre Operator iseek Purchased in $400 Million Transaction
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Concise Overview
- Asset management firm HMC Capital is set to acquire data centre provider iseek for $400 million.
- iseek manages seven co-location data centres located in Queensland, South Australia, and New South Wales.
- This acquisition follows HMC Capital’s $1.9 billion takeover of Global Switch Australia, strengthening its data centre assets.
- iseek services more than 500 clients and aims to enhance its IT capacity from 6MW to 34MW.
- The acquisition will be incorporated into HMC’s DigiCo Infrastructure REIT, which is expected to be launched on the Australian Stock Exchange (ASX).
- DigiCo Infrastructure will supervise 13 tier 1 and 2 hyperscale and co-location data centres in Australia and North America.
HMC Capital Acquires iseek for $400 Million
iseek’s Growing Presence in Australia
Queensland-based data centre operator iseek has been acquired by asset management firm HMC Capital for a value of $400 million. With a network of seven co-location data centres distributed across Queensland, South Australia, and New South Wales, iseek has emerged as a key player in Australia’s data centre sector.
Currently, iseek caters to over 500 clients, with an existing IT capacity of 6MW. The company has plans to significantly ramp up its overall capacity to 34MW. This acquisition is expected to facilitate iseek’s growth, laying a robust groundwork for further advancement in the Australian market.
HMC Capital’s Expanding Data Centre Holdings
This acquisition is the latest initiative by HMC Capital to reinforce its foothold in the Australian data centre landscape. Merely two weeks earlier, HMC Capital announced it would acquire another significant entity, Global Switch Australia, for a total of $1.9 billion.
Both acquisitions will be integrated into a new real estate investment trust (REIT) known as DigiCo Infrastructure, which HMC intends to list on the Australian Stock Exchange (ASX). DigiCo Infrastructure will encompass a total of 13 tier 1 and 2 data centres, not only within Australia but also extending to North America.
Incorporating iseek’s data centres into DigiCo’s portfolio will enable HMC Capital to enhance its footprint in the booming hyperscale and co-location data centre markets, which are being driven by rising demand for cloud services, data storage, and digital solutions.
The REIT Vision
DigiCo Infrastructure is designed to leverage the surging demand for data infrastructure on a global scale. By listing this trust on the ASX, HMC Capital aims to draw in investors interested in digital infrastructure, a sector that has exhibited exceptional resilience and growth potential.
HMC’s clear strategy positions DigiCo Infrastructure as a central player within the hyperscale data centre market. Through its acquisitions of iseek and Global Switch Australia, DigiCo will provide various services to clientele in Australia and North America, offering both co-location and hyperscale solutions.
iseek’s Leadership Enthusiastic About Growth Initiatives
The leadership at iseek seems entirely supportive of the acquisition. In a joint statement, iseek CEO Scott Hicks and founder Jason Gomersall conveyed their positive outlook for the future. They remarked that the acquisition would “accelerate iseek’s next growth phase,” and a considerable portion of the acquisition funds will be taken in shares of DigiCo’s REIT IPO. This reflects their faith in the REIT’s investment strategy and future growth.
This move aligns seamlessly with iseek’s own ambitions to scale operations and enhance its customer base, creating a beneficial scenario for both iseek and HMC Capital.
Conclusion
iseek, a notable data centre operator with locations in Queensland, South Australia, and NSW, has been acquired by HMC Capital for $400 million. This acquisition forms part of HMC’s broader strategy to expand its data centre portfolio through DigiCo Infrastructure, a new REIT that will oversee 13 data centres across Australia and North America. The agreement is anticipated to expedite iseek’s growth and expand its capacity. This acquisition follows HMC’s recent acquisition of Global Switch Australia for $1.9 billion.
Q: What is iseek?
A:
iseek is a data centre provider based in Queensland, Australia. The company runs seven co-location data centres across Queensland, South Australia, and New South Wales, serving over 500 clients by providing IT infrastructure, including cloud services and data storage.
Q: What does HMC Capital’s acquisition of iseek mean for the Australian data centre market?
A:
HMC Capital’s acquisition of iseek reflects a growing interest in Australia’s data centre infrastructure, particularly in the sectors of co-location and hyperscale facilities. With HMC acquiring both iseek and Global Switch Australia, the company positions itself as a key player in the region’s digital infrastructure market, which is anticipated to experience significant growth in the coming years.
Q: What is DigiCo Infrastructure?
A:
DigiCo Infrastructure is a real estate investment trust (REIT) established by HMC Capital to oversee its data centre portfolio. DigiCo will eventually manage 13 tier 1 and 2 hyperscale and co-location data centres across Australia and North America, inclusive of iseek’s facilities. DigiCo anticipates listing on the ASX, allowing investors to purchase shares in the trust.
Q: Why are data centres becoming such a strategic investment?
A:
Data centres are essential infrastructure in today’s digital economy. The escalating demand for cloud services, data storage, and digital solutions has resulted in businesses and governments increasingly relying on data centres for their IT requirements. This trend has rendered data centres a highly appealing investment for asset managers like HMC Capital, especially as the digital economy keeps expanding globally.
Q: How will the acquisition affect iseek’s customers?
A:
iseek’s customers will likely not notice immediate changes due to the acquisition. In fact, the deal is expected to accelerate the company’s growth and enhance its capacity from 6MW to 34MW. This increase could translate to improved services and greater capacity for existing clients in the near future.
Q: What are the future growth prospects for DigiCo Infrastructure?
A:
DigiCo Infrastructure is well-situated for growth, particularly with the rising demand for digital infrastructure. With 13 data centres operating across Australia and North America, DigiCo possesses a strong base to capitalize on the growing need for hyperscale and co-location data services. Furthermore, the listing of DigiCo on the ASX will provide access to capital, propelling its growth ambitions even further.