Datacentres demand red hot

The second half the year will continue to be driven by bumper deals in the European datacentre and cloud space as international buyers eye investment on the continent. The first half of the year saw a mix of M&A and financing transactions, spurred by the adoption of cloud computing and an increased demand of infrastructure to support this.

The UK has been a particularly hot sector, as well as France and Norway, with many of the deals have been led by strategic players, who are currently the main buyers in the sector, such as the likes of Digital Realty, CyrusOne and Equinix, with very few private equity-led transactions. This is expected to continue as Norwegian colocation business Digiplex comes to market in H2, according to TMT Finance data.

Elsewhere in the market, UK firm Ark Datacentres is expected to come to market in the second half of the year, with an IPO rumoured to be on the cards. British DC operator Colt is also in the market with a refinancing deal, after owners Fidelity were rumoured to have been considering a sale of the firm earlier this year.

Valuation multiples are also expected to rise, having reached 18 times earlier this year with the sale of Zenium Technology Partners. This figure spurred PE firm Colony Capital to attempt a resale of French DC Data4, which was snapped up in July by AXA Investment Managers for a reported E500m-E650m. Colony had been seeking a valuation multiple of 15 to 17 times, according to TMT Finance intelligence.

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Published on 09.08.2018
Published on 09.08.2018
Published on 09.08.2018