Temasek Holdings explores acquisition of ASX-listed Nextdc

Data centre interior.

Singapore’s state investor Temasek Holdings is reportedly looking to acquire ASX-listed Nextdc Ltd, a data centre services firm, according to a report by The Australian.

Founded in 2010 and headquartered in Brisbane, Nextdc provides data centre outsourcing solutions, connectivity services and infrastructure management software. It maintains a series of data centres in key Australian cities that include Brisbane, Canberra, Sydney, Melbourne and Perth.

As at 12 February 2018, the firm has a market capitalisation of A$1.71 billion ($1.33 billion). In the financial year 2017, Nextdc reported a profit estimated at A$23 million, a substantial increase over the A$1.8 million profit it posted for FY 2016.

US private equity player Blackstone Group has been preparing a takeover bid for Nextdc’s spin-off, Asia Pacific Data Centre Group, according to Australian media reports. This development has also driven increased investor interest in Nextdc, which recently rejected a buyout offer for the Asia Pacific Data Centre Group, in which it retains a significant stake.

Temasek counts ST Telemedia, a major data centre player, in its portfolio. This interest in Nextdc represents a consolidation of its data centre interests as hyperscale public cloud service providers have been key in driving demand for data centre services in Australia, particularly in the cities of Sydney and Melbourne, with the firm also keen to expand its holdings in Europe.

In October 2017, ST Telemedia Global Data Centres (GDC), its data centre unit, acquired Virtus Data Centres, a UK-based data centre provider. The same month also saw Temasek-backed Mapletree acquire a portfolio of 14 US data centres for $750 million; a joint venture (JV) of Mapletree Investments and SGX-listed Mapletree Industrial Trust (MIT) purchased the server centres from Carter Validus Mission Critical REIT, a non-traded real estate investment trust sponsored by US commercial real estate firm Carter Validus, through its vehicle Mapletree Redwood Data Centre Trust.

A January 2018 report by Research and Markets notes that international global public cloud providers such as Amazon Web Services, Microsoft, and Google have significantly increased their uptake of wholesale data centre capacities in recent years in Australia, with escalating costs in the Sydney CBD region driving Australia’s cloud providers and multi-national corporations (MNCs) to base their local operations in other Australian cities.

Perth is emerging as an attractive city in terms of international connectivity to global markets, especially given the ongoing construction of the APX-West subsea cable linking Perth to Singapore. APX-West is due for completion in 2018.

Also Read:

Temasek Holdings emerges as major backer in Turkey’s MLP Health Services IPO

Equinix to buy Australia’s Metronode data centre from OTPP for $791m

Mapletree Industrial Trust completes joint purchase of 14 US data centres for $753m

Singapore’s Temasek Holdings acquires stake in Brazil’s Clinica SiM: Report

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.