Data center operator iseek is poised for a $400 million acquisition by asset manager HMC Capital.
iseek’s portfolio includes seven co-location data centers across Queensland, South Australia, and New South Wales, currently serving over 500 customers with 6MW of installed IT capacity. Plans are underway to boost this capacity to 34MW to meet rising demand.
Post-acquisition, iseek will become part of a newly formed real estate investment trust (REIT) called DigiCo Infrastructure, which will list on the ASX.
DigiCo’s combined portfolio will feature 13 tier 1 and tier 2 hyperscale and co-location data centers across Australia and North America, establishing a robust presence in both regions.
According to iseek CEO Scott Hicks and founder, executive director Jason Gomersall the deal would “accelerate iseek’s next phase of growth”
“A significant portion of the acquisition proceeds will be taken in scrip in the DigiCo Infrastructure REIT IPO which is a testament to our strong conviction in the REIT’s investment strategy and growth runway,” they said.
HMC Managing Director and CEO, David Di Pilla, said, “iseek is a leading colocation data centre platform with a high quality and diverse customer base across government, hyperscale and enterprise customers.,”
“This acquisition is also highly complementary to our recent acquisition of Global Switch Australia with a number of benefits including enhanced geographic and customer diversification,” he said.
The iseek acquisition is consistent with HMC’s recently announced strategy to establish a Global Digital Infrastructure Platform (DigiCo).
HMC has also secured $2.5bn of strategic operating assets in Australia and an additional $1.6bn of data centre assets located in North America
