Digital infrastructure investment company Seraya AQX Pte Ltd is set to acquire SPTel Pte Ltd from Singapore Technologies Engineering's wholly-owned subsidiary, ST Engineering Urban Solutions Ltd., and Singapore Power Limited for an enterprise value of $227 million.

The acquisition will see AQX acquire a 100 percent stake in SPTel.

SPTel operates as an independent fiber network operator in Singapore, providing low-latency connectivity to corporate, government, telecom, and data center customers across the country.

The company also provides direct and diverse cross-border fiber routes into neighboring data center hubs in Malaysia and Indonesia.

According to AQX, the acquisition "represents a rare opportunity to scale a strategic digital infrastructure platform in a high-barrier market."

The company noted the Singapore–Johor corridor, which it said is emerging as a major APAC data center hub, has a projected combined capacity exceeding 3GW.

For AQX, the acquisition expands its digital infrastructure portfolio in the Asia Pacific region, where it has assets in Singapore, Japan, Korea, and Australia.

“The acquisition of SPTel by AQX aligns with Seraya Partners’ strategy of investing in scarce infrastructure platforms with long-term value creation potential,” said James Chern, CIO and managing partner of Seraya Partners.

AQX expects to close the acquisition in the fourth quarter of this year, subject to regulatory approvals from the Infocomm Media Development Authority of Singapore.