AMP Capital has made its largest infrastructure equity investment in the US with the acquisition of a half-a-billion-dollar cloud computing and data centre services company.
The global investment manager said, on behalf of its global infrastructure equity strategy, it has acquired Expedient from Landmark Media Enterprises.
AMP Capital did not disclose the acquisition amount, but IPE Real Assets understands that the deal is AMP Capital’s largest equity investment in the US with an enterprise value of around $500m (€448.5m).
Expedient – which offers colocation and cloud services – operates 11 self-directed data centre facilities. Expedient’s current data centre footprint consists of 160,000sqft of space and 12.4MW of power.
Simon Ellis, partner, head of Americas infrastructure equity at AMP Capital said: “Expedient offers a fully integrated, scalable platform with embedded growth capacity.
”Its attractive growth prospects, supported by industry trends, supplement its stable revenues and strong cash flow generation.”
Ellis said Expedient represents a significant additional investment in the US communications infrastructure space following AMP’s acquisition of Everstream, a Cleveland-based fibre provider, in 2018.
Matt Evans, partner, global head of AMP communications, infrastructure equity, said this investment is AMP Capital’s first data centre/Infrastructure as a service acquisition.
“We have been seeking the right investment globally through which to enter this highly attractive sector.
“Increasing IP traffic, the growing complexity and capital intensity of managing in-house infrastructure, and evolving regulatory requirements are driving demand in the outsourced cloud and data centre space.”