REG - Cordiant Digital Inf - CRA agrees to acquire Cloud4com and DC Lužice

Cordiant Digital InfrastructureAnnouncement

20/12/2023 07:00

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RNS Number : 3648X  Cordiant Digital Infrastructure Ltd  20 December 2023

20 December 2023

LEI: 213800T8RBBWZQ7FTF84

 

Cordiant Digital Infrastructure Limited

CRA agrees to acquire Cloud4com and DC Lužice

 

Cordiant Digital Infrastructure Limited (the "Company" or "CORD"), an
operationally-focused, specialist digital infrastructure investor, is pleased
to announce that its Czech portfolio company, České Radiokomunikace a.s.
("CRA"), has agreed to acquire a pair of businesses from Aricoma a.s. in the
data centre and cloud services market, Cloud4com and DC Lužice (together the
"Transactions").

The Transactions represent a significant advance in both the scale and
capability of CRA in the Czech Republic's fast-growing data services market.
The Transactions also clearly demonstrate the implementation of the Company's
"Buy, Build and Grow" model.

Cloud4com is being acquired for an initial consideration of CZK 870 million
(£30.5 million), subject to customary adjustments and with a further amount
payable up to a maximum of CZK 485 million (£17.0 million), depending on
Cloud4com's EBITDA for the year ended 31 December 2024. DC Lužice is being
acquired for CZK 130 million (£4.6 million), also subject to customary
adjustments. Both businesses are unlevered.

The purchase consideration for the Transactions is being funded by CRA from
its existing cash resources with no financing required from the Company.

The Transactions are subject to the completion of Czech corporate requirements
and are expected to close in early January 2024.

About Cloud4com and DC Lužice

Cloud4com is a leading cloud services provider in the Czech Republic,
providing private cloud and associated services for enterprise customers.
These cloud services are enabled by Virtix, a software platform developed
in-house by Cloud4Com. For the financial year ending 31 December 2023,
Cloud4com is expected to generate revenue of CZK 155 million (£5.4 million)
and EBITDA of CZK 44.6 million (£1.6 million), both unaudited.

DC Lužice is a Tier III data centre facility strategically located in the
"digital Danube" triangle, that is centred on Brno-Vienna-Bratislava. The
facility, which is owned and has 85 racks, is currently 32% utilised, newly
renovated and located in a highly secure private site.

Commenting, Steven Marshall, Chairman of Cordiant Digital Infrastructure
Management said:

"We are delighted to have agreed to acquire these attractive data centre
assets, which are being funded by organic cash flow at CRA. These transactions
are highly complementary to CRA's existing data centre and cloud businesses,
enhancing CRA's market leading position in its respective areas of operations
and further demonstrating our active management approach through our "Buy,
Build and Grow" strategy."

Commenting, Benn Mikula, CEO of Cordiant Capital said:

"These acquisitions mark an important step in CRA's continued growth in the
Czech data centre and cloud services market. They add capabilities and
capacity to an already strong team. This market segment is increasingly
important to CRA's revenue mix."

Commenting, Miloš Mastník, CEO of CRA said:

"These transactions are an important milestone for CRA as we continue to
diversify our operations into high growth areas such as data centres and cloud
services. Cloud4com has achieved a leading market position in the Czech
Republic and we see a clear strategic fit and synergistic value in adding
Cloud4com and DC Lužice to CRA. We expect these assets to contribute strong
revenue growth going forward and we anticipate capturing margin expansion due
to increasing operating leverage. We look forward to working with the
Cloud4com management team to further develop and grow the combined data
centres and cloud businesses and cement CRA's leadership position in that area
of the market."

 

For Further Information, please visit www.cordiantdigitaltrust.com
(http://www.cordiantdigitaltrust.com) or contact:

 Cordiant Capital Inc.                                                                                                              +44 (0) 20 7201 7546

 Investment Manager

 Stephen Foss, Managing
 Director
 Celicourt                                                                                                                          +44 (0)20 7770 6424

 PR Adviser

 Philip Dennis / Felicity Winkles / Ali AlQahtani
 Aztec Financial Services (Guernsey) Limited                                                                                        +44 (0) 1481 749700

 Company Secretary and Administrator

 Chris Copperwaite / Laura Dunning
 Investec Bank plc                                                                                                                  +44 (0) 20 7597 4000

 Joint Corporate Broker

 Tom Skinner (Corporate Broking)

 Lucy Lewis / Denis Flanagan (Corporate Finance)
 Jefferies International Limited                                                                                                    +44 (0) 20 7029 8000

 Joint Corporate Broker

 Stuart Klein / Gaudi Le Roux

 

Notes to Editors:

About the Company

Cordiant Digital Infrastructure Limited 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.

In total, the Company has successfully raised £795 million in equity, along
with a further €200m through a Eurobond with four European institutions;
deploying the proceeds into four acquisitions: CRA, Hudson Interxchange,
Emitel and Speed Fibre, which together offer stable, often index-linked
income, and the opportunity for growth, in line with the Company's Buy, Build
& Grow model.

About the Investment Manager

Cordiant Capital Inc ("Cordiant") 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. In addition, Cordiant 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, our sector investment teams (combining seasoned
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.

About CRA

CRA is a diversified digital infrastructure company, operating mobile towers,
a broadcast network, data centres, a fibre network and Internet of Things
networks serving utilities. The company has a history of offering superior
customer service, increasingly through integrated solutions spanning the
spectrum of digital infrastructure.

 

 

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