Pacific Equity Partners (PEP) has agreed to buy a 75% stake in New Zealand data centre company Spark NZ for NZ$584m (€297m).
The acquisition is being made on behalf of PEP’s Secure Asset Fund, which invests in infrastructure growth platforms. Spark owns 11 data centres in New Zealand with plan for a new facility in Auckland.
Spark CEO, Jolie Hodson, said, “Through this partnership we will realise value for our data centre assets in the short term, while also continuing to participate in the growing market through our 25% retained stake – creating further value for our shareholders over the long term.”
Hodson said Spark expects to receive approximately NZ$486m in cash upon completion, with an additional NZ$98m in performance-based payments. The deal values the business at up to NZ$705m.
Proceeds from the sale will be used to reduce group net debt.
As part of the deal, Spark is creating a new, separate company called DC Co to hold all of its data centres. The new company will have its own management and finances.
Hodson said: “DC Co has a leading data centre platform in a growing market, with over 23MW of built capacity across New Zealand, and advanced plans in place for a greenfield development on Auckland’s North Shore, as well as further extensions at the Takanini site in South Auckland.
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