Australian telco services provider 5GN has entered into an agreement to snap up Australian Pacific Data Centres (APDC) for A$3.5 million cash at a 7x EBITDA multiple, including annualised contracted revenue of A$1.7 million per annum.
5GN said the acquisition also unlocks several cost synergies with expected benefits to be approximately A$500,000 of annualised savings starting H2 FY20.
“The Pyrmont Data Centre has capacity of over 150 racks with current utilisation at 30%,” 5GN said, noting that future expansion is also available. “5GN’s combined capacity now exceeds 600 racks across its owned and operated data centres in Adelaide, Melbourne and Sydney.”
The acquisition will allow it to execute its wholesale channel strategy for data centre services and introduce its fibre network and cloud services to other carriers, hardware vendors and managed service providers.
With several DC locations now connected to a national high-speed network, 5GN aims to fast track the launch of its ‘5GN Cloud Port’ product and a set of new indirect channel services.
“The importance of the easy to access APDC location cannot be underestimated, particularly for organisations situated in the Sydney CBD.” 5G said. “This enables 5GN to provide both wholesale and direct customers with fast and convenient access to the ISO accredited, Tier 3 designed facility to access mission critical digital infrastructure within
The APDC facility – which has been purpose built to Tier 3 standards with power, cooling, redundancy and carrier grade diverse network access – been operating for 15 years and has N+1 redundancy and automated management systems.