3i Infrastructure is buying Global Cloud Xchange (GCX) for $512m (€442m).

GCX is a global data communications service provider and owns one of the world’s largest private subsea fibre optic networks. Its 66,000km of cables span 46 countries from North America to Asia, with a particularly strong position on the Europe-Asia and Intra-Asia routes.

3i Infrastructure said it is partnering with GCX’s management team with the ambition to “increase the utilised capacity” on GCX’s existing routes as well as to add new routes and customers.

Richard Laing, chair of 3i Infrastructure, said GCX provides an essential service to its customers and operates in an industry with high barriers to entry.

“GCX is a great addition to the company’s portfolio, in a sector we have been keen to invest further into, and will provide an attractive yield to 3i Infrastructure.”

Phil White, managing partner and head of infrastructure at 3i Investments, investment manager of the company, said: “GCX is one of the most comprehensive subsea cable networks globally, with a unique network on strategically important routes.”

Carl Grivner, CEO GCX, said: “We will benefit from the team’s experience of investing in telecommunications infrastructure as well as their international network and experience of supporting companies to grow.

“We look forward to partnering with 3i Infrastructure to accelerate our growth and strengthen our platform.”

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