PCCW Ltd. is acquiring DigitalBridge data centre business for $750 million.
Funds affiliated with DigitalBridge’s investment management platform have agreed to acquire the data centre business of the Hong Kong-based company, confirming rumours reported last month.
“DigitalBridge’s expertise in investing in, building, and operating data centres to the highest standards complements PCCW DC’s next stage of development perfectly,” said Marc Ganzi, President and CEO of DigitalBridge.
“This is an excellent platform for DigitalBridge to grow its regional presence while supporting a strong management team focused on serving many of the same hyperscale and large enterprise customers that DigitalBridge serves globally.”
Ganzi stated that the acquired company was “well-positioned for significant growth” and possessed a robust development pipeline with “considerable” expansion capacity.
PCCW operates data centre businesses in Hong Kong and Malaysia via two subsidiaries, Powerbase HK and DC Malaysia. Its data centre portfolio consists of nine facilities located in Hong Kong, China, and Malaysia.
The company stated that its business generated a net profit of $3 million in 2020 and that it would gain $180 million from the transaction.
PCCW has been attempting to sell these assets since April, stating that the sale would “enable the company to better focus and strengthen its core service and product offerings, as well as create additional value for its customers and shareholders.”
Colony Capital formed the DigitalBridge data centre REIT in June, following the sale of the majority of the company’s non-digital assets.