Worldwide investment platform IPI Partners will acquire 100% ownership of all DigiPlex Group companies, making it IPI’s second European purchase after Milan-based SUPERNAP Italia in February 2021.
IPI Partners focuses entirely on data centers and other technology and connectivity-related real asset (IPI) investments. In turn, DigiPlex is a significant Nordic developer, setting the grounds for a perfect acquisition.
DigiPlex operates scalable, secured, and sustainable colocation data centers. Currently, it runs eight data centers, including locations in Oslo, Stockholm, and Copenhagen, all of which combined account for a footprint of 21,000 meters built whitespace and over 400,000 meters of land currently available for customer expansion.
For quite some time now, DigiPlex has believed that digital transformation and sustainability should go hand in hand. As the company has pursued this philosophy, it has also received several awards regarding energy-efficient innovations and sustainability initiatives.
DigiPlex uses exclusively 100% sustainable sources for its technologically advanced facilities. Due to all this, IPI Partners found DigiPlex as a suitable solution for immediate expansion in Northern Europe. Furthermore, the acquisition grants the company capacity for expansion to accommodate the requirements of hyper-scalers and major colocation tenants.
Matt A’Hearn, who serves the role of a partner at IPI, had this to say:
DigiPlex is a market leader in the high-growth Nordic data center sector, and we have long admired the quality of its management, employees, and business strategy. With DigiPlex’s existing scaled presence and deep development expertise, we will significantly expand our hyperscale-focused data center portfolio in Europe, a key region of focus for IPI. We are excited to partner with the DigiPlex team to further realize the company’s tremendous growth potential. Utilizing our network and existing businesses, we believe we can together build a platform that meets the rapidly evolving needs of the digital economy in the Nordics and beyond.
DigiPlex will receive the needed cash, experience, and contacts from this deal. In turn, the acquisition will help them accelerate their next expansion stage in the Nordics and beyond.
Wiljar Nesse, who serves the role of a CEO of DigiPlex, had this to say:
At a time of rapid growth for the industry, IPI provides near-term scalability to DigiPlex. New capital, as well as a global footprint and access to global supply chains, relationships, and customers, are expected to supercharge our growth, enabling us to continue meeting the hyperscale demand that we are experiencing. We believe this acquisition is an acknowledgment of our strong customer relationships and proven business model, and that employees and customers alike will benefit as we accelerate our plans and expand our vision in partnership with IPI.
DigiPlex to be acquired by IPI Partners.
Transaction brings IPI immediate strong presence in Europe as well as capacity for expansion.https://t.co/5B50rXFTMF pic.twitter.com/E16DWREyMe
— DigiPlex (@DigiPlex_ICT) July 7, 2021
Other related parties in this transaction were RBC Capital Markets, DigiPlex’s only finance advisor, and Latham & Watkins and Wikborg Rein, the legal consultants. On the other side, Gibson, Dunn & Crutcher LLP, Schjodt, and Lundgrens provided legal advice to IPI. Finally, Deutsche Bank Credit Solutions and Direct Lending acted as the Mandated Lead Arranger.
We expect the transaction to close approximately in the third quarter of 2021. Once IPI assumes full ownership of DigiPlex, they will serve bondholders a call notice for early redemption, according to their terms.
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