5GN Acquires Sydney CBD Data Centre extending infrastructure capacity to over 600 racks.

Highlights

  • 5GN has entered into an agreement to acquire Australian Pacific Data Centres Pty Ltd (APDC) for $3.5m cash at a 7x EBITDA multiple; includes annualised contracted revenue of $1.7M per annum
  • The acquisition also unlocks several cost synergies with expected benefits to be approximately $500k of annualised savings starting H2 FY20
  • The Pyrmont Data Centre has capacity of over 150 racks with current utilisation at 30%; future expansion is also available
  • The Tier 3 designed data centre has been built to leverage the highest standards of security and access control
  • 5GN’s combined capacity now exceeds 600 racks across its owned and operated Data Centres in Adelaide, Melbourne and Sydney
  • With several DC locations now connected to a national high-speed network, 5GN will fast track the launch of its ‘5GN Cloud Port’ product and new indirect channel services
  • The acquisition lays out the basis for CBD and inner Sydney fibre network expansion to key clients who require data centre access

 

5G Networks (ASX:5GN) is pleased to announce the acquisition of Australian Pacific Data Centres, located in the Sydney CBD.

This infrastructure investment will unlock significant opportunities for continued revenue growth, cost savings, and operational synergies and is in line with the Company’s stated acquisition and growth strategy. APDC houses over 150 data centre racks, lifting the 5GN Data Centre capacity to over 600 racks, all connected to a secure, national high-speed network.

The acquisition will allow 5GN 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. The importance of the easy to access APDC location cannot be underestimated, particularly for organisations situated in the Sydney CBD. 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 minutes.

The APDC facility has been purpose built to Tier 3 standards with power, cooling, redundancy and carrier grade diverse network access. The Data Centre has been operating for 15 years and has N+1 redundancy and automated management systems. The transfer to 5GN of the operating lease and purchase of the asset infrastructure allows for continuity for existing customers, carriers and the rapid expansion of the 5GN data centre services, falling in line with the Company’s cross and upsell strategy.

This Sydney expansion will support the accelerated rollout of the ‘5GN Cloud Port’, an offering which packages the features of seamless access to the cloud in addition to connectivity into all relevant data centres in Australia. This innovative networking capability will simplify and speed the design, delivery and management of mission critical high- speed data services for customers.