Cordiant Digital Infrastructure Limited to Acquire Stakes in Two Belgian Data Centre Providers, Expanding its Presence in Western Europe
LONDON: Cordiant Digital Infrastructure Limited (“CORD”, or the “Company”), an operationally focused investor specialising in digital infrastructure, managed by Cordiant Capital Inc (“Cordiant”), is pleased to announce its agreement – in partnership with TINC NV (“TINC”) and another Cordiant-managed fund – to acquire and combine Belgian data centre provider DCU Invest NV (“Datacenter United”, or “DCU”) and the data centre business of Proximus Group (the “PDC Business” together with DCU the “Combined Group”). CORD and another Cordiant-managed fund will acquire a 47.5%[1] stake in the Combined Group for a total equity consideration of €92.3 million.
This acquisition marks another significant step in CORD’s dedicated ‘Buy, Build and Grow’ strategy, enhancing its presence in the European data centre market. The Combined Group will be a market-leading retail and wholesale colocation operator in Belgium. CORD’s strategy is designed to acquire, enhance and scale digital infrastructure assets, focused on core assets such as data centres, fibre networks, and telecommunications in Europe and North America. This strategy enables CORD to create long-term value for investors while meeting the growing demand for digital infrastructure in an increasingly connected world. These two connected acquisitions illustrate Cordiant’s ability to identify opportunities to create value in complex situations and apply operational expertise to execute innovative transactions.
DCU is a Tier III/IV data centre operator, with 9 data centres across 8 locations in Belgium. The PDC Business comprises 4 data centres across 3 locations in Belgium. As part of this transaction, CORD and another Cordiant-managed fund will acquire 50% of the voting rights of DCU via the acquisition of primary and secondary equity. Additionally, and concurrently, DCU has agreed to acquire the PDC Business for an enterprise value of €128 million from Proximus Group, the incumbent Belgian telecommunications provider. Before closing, the PDC Business will be transferred to a newly formed company and DCU will acquire the entire share capital of this newly created entity.Following completion of the transaction, CORD and TINC will have a balanced 50/50 partnership. The enterprise value for the Combined Group totals €200.5 million.
Mr Haringsma will become the CEO of the Combined Group and Steven Marshall, Chairman of Cordiant Digital, will become Chairman of the Board of Directors.
Cordiant will contribute its expertise in data centres to help drive the performance of the Combined Group, which will benefit from economies of scale and cost synergies. These acquisitions will further expand CORD’s EU data centre portfolio, and Cordiant sees opportunities for the acquired data centres to benefit from CORD’s wider network of data centre assets. The Combined Group’s scalable capacity positions it to effectively meet the increasing demand for digital infrastructure, while offering long-term, stable revenue streams through tenant contracts in a rapidly growing market.
As part of the transaction, Proximus, as tenant, has entered into a long-term, inflation-linked master service agreement (“MSA”) with the Combined Group. This agreement includes an initial 10-year term with two 5-year extension options. Upon completion, Proximus is expected to utilise 37% of the Combined Group’s IT power capacity, providing a robust foundation of long-term revenue.
The transactions are expected to close by Q1 2025. These transactions reinforce CORD’s dedication to meeting long-term demands within the digital infrastructure sector. By aligning with industry-leading practices, CORD is committed to driving value creation for stakeholders while supporting the growth of a resilient, future-proof and sustainable digital economy.
Steven Marshall and Benn Mikula, Co-founders of Cordiant Digital Infrastructure Management, said:
“We are delighted to be working with TINC, who, as a long-term investor, shares a common strategic vision for this business and will be able to co-invest alongside the Company in the further expansion of the facilities. This transaction could only be successfully executed because of the Investment Manager’s ability to create a potentially valuable combination from a complex situation. The acquisition provides a good foundation for the Manager’s value creation plan for these assets. The transaction shows the Manager’s operational data centre expertise and ability to source transactions that meet its demanding criteria for capital deployment.”
Manu Vandenbulcke, TINC’s CEO, said:
“This transaction represents a major milestone for Datacenter United. With an increased foothold in the important Brussels area, Proximus as key customer and Cordiant as a complementary new shareholder, Datacenter United is well positioned for strong growth. For TINC, supporting such a growth story aligns perfectly with our ambition to contribute to the development of the infrastructure for the world of tomorrow and to create value for our shareholders. We are looking forward to the collaboration with Cordiant and Proximus in this new strategic partnership.”
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About Cordiant Digital Infrastructure Limited
Cordiant Digital Infrastructure Limited (the “Company”) primarily invests in the core infrastructure of the digital economy – data centres, fibre-optic networks and telecommunication and broadcast towers – in Europe and North America. Further details about the Company can be found on its website at www.cordiantdigitaltrust.com.
The Company is a sector-focused specialist owner and operator of Digital Infrastructure, listed on the London Stock Exchange under the ticker CORD. In total, the Company has successfully raised £795 million in equity, along with a debt package that includes a €200m Eurobond with a consortium of blue-chip institutions; deploying the proceeds into five acquisitions: CRA, Hudson, Emitel, Speed Fibre and Norkring, which together offer stable, often index-linked income, and the opportunity for growth, in line with the Company’s Buy, Build & Grow model.
About Cordiant Capital
Cordiant Capital Inc is a specialist global infrastructure and real assets manager with a sector-led approach to providing growth capital solutions to promising mid-sized companies in Europe, North America and selected global markets. Since the firm’s relaunch in 2016, Cordiant, a partner-owned and partner-run firm, has developed a track record of exceeding mandated investment targets for its clients.
Cordiant focuses on the next generation of infrastructure and real assets: sectors (digital infrastructure, energy transition infrastructure and the agriculture value chain) characterised by growth tailwinds and technological dynamism. It also applies a strong sustainability and ESG overlay to its investment activities.
With a mix of managed funds offering both value-add and core strategies in equity and direct lending, Cordiant’s sector investment teams (combining experienced industry executives with traditional private capital investors) work with investee companies to develop innovative, tailored financing solutions backed by a comprehensive understanding of the sector and demonstrated operating capabilities. In this way, Cordiant aims to provide value to investors seeking to complement existing infrastructure equity and infrastructure debt allocations. Further details can be found on Cordiant’s website at https://www.cordiantcap.com/.
About TINC
TINC is a listed investment company that seeks to create sustainable value by investing in the infrastructure for the world of tomorrow. TINC participates in companies that are active in the realization and operation of infrastructure and holds a diversified portfolio of participations in focus areas such as public infrastructure, energy infrastructure, digital infrastructure and selective real estate in Belgium, France, Ireland and the Netherlands. For more information, please visit www.tincinvest.com.
About DCU Invest NV
Datacenter United is a market leading Tier III/IV data centre operator based in Belgium. The group operates 9 data centres across 8 locations in the Flanders region, with a strong presence in Antwerp, Ghent and Bruges. The group has an experienced management team led by Friso Haringsma.
About the PDC Business
The PDC Business consists of the Tier III Brussels data centre assets currrently owned by Proximus, the market leading telecommunications operator in Belgium. The business has 4 data centres in 3 locations, all of which are around the Brussels region. Proximus will remain a key customer of the business under a new 10-year index-linked MSA with two 5-year extensions.
[1] Post completion, Cordiant and TINC will each own 47.5% of the economic rights of combined entity and the remaining 5% will be owned by Mr. Haringsma, the CEO of the Combined Group.