Investment firm Infratil has bought a majority stake in network provider and interconnection firm Console Connect.
The company this week announced it had executed a conditional agreement with HKT to acquire an 80 percent stake in Console Connect for $160 million.
As part of a ‘strategic partnership’ with HKT, the two companies aim to jointly invest up to $295m in Console Connect to accelerate growth via marketing, R&D, and new subsea cable investments over a two-year period.
Infratil said its investment will be funded through available capital and existing bank facilities. The deal is set to close in Q3 2024.
Infratil CEO, Jason Boyes, said: “Console Connect is a leading global software-defined interconnection platform, and this acquisition is a continuation of our conviction in the tailwinds of the digital infrastructure sector. It enables us to invest in building a next-generation platform to support underlying growth in the demand for digital infrastructure and global connectivity solutions by enterprise and wholesale users.”
HKT’s group managing director, Susanna Hui, added: “Over the past few years, the team at Console Connect has successfully developed it into a world-leading platform. We are pleased to have found a like-minded partner in Infratil who is excited about the potential opportunities to continue growing Console Connect. Our partnership around Console Connect, investing in the platform as a standalone operation, will deliver material benefits to the business as well as to HKT shareholders through unlocking value and further developing economies of scale.”
Founded in 2011, Console Connect owns and operates a Tier 1 global IP network spanning 738,000km of fiber. It has 135 POPs and capacity on 67 cable systems. The company reportedly serves around 17 percent of all Internet traffic.
HKT (aka Hong Kong Telecom) is owned by PCCW. PCCW Global and HKT Trust acquired Console Connect in 2017.
Morrison & Co-owned investment firm Infratil previously invested in telco One NZ (previously Vodafone NZ), UK data center firm Kao Data, CDC Data Centers, and Dutch fiber firm Fore Freedom.
Bank Street acted as financial advisor and Herbert Smith Freehills acted as legal counsel to Infratil. Moelis acted as financial advisor and Gibson Dunn acted as legal counsel to HKT.