The Australian investment manager has boosted its US communications infrastructure holdings with a cloud and data center service provider acquisition.
AMP Capital has agreed to acquire Expedient (Continental Broadband, LLC), a leading US provider of cloud computing and data center services, from Landmark Media Enterprises, LLC.
Expedient offers a suite of co-location, cloud, managed services and network access products to over 1,200 customers. The business operates 11 self-directed data center facilities and leverages a half dozen partner facilities in order to provide outsourced information technology solutions to a range of businesses and industries across the US from its eight operational locations in Baltimore, Boston, Cleveland, Columbus, Indianapolis, Memphis, Phoenix and Pittsburgh.
Expedient’s data centers and cloud computing platforms act as one functional asset with a unified delivery and service capability. The current data center footprint consists of approximately 160k square feet of space and 12.4 megawatt of power.
“We are delighted to secure this high-quality business on behalf of our investors. 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,” AMP Capital partner and head of Americas infrastructure equity Simon Ellis said.
“Expedient represents a significant additional investment in the US communications infrastructure space following our acquisition of Everstream, a Cleveland-based fiber provider, in 2018.”
Matt Evans, AMP Capital partner, global head of communications, infrastructure equity, said the investment is AMP Capital’s first data center/Infrastructure as a Service (IaaS) 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 center space,” he said.
The investment is made on behalf of investors in AMP Capital’s global infrastructure equity strategy. Subject to customary closing conditions, the transaction is expected to close in Q4 2019. The Bank Street Group served as financial advisers to AMP Capital, and Evercore served as financial advisers to Landmark.
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