Firms: Allens (H.R.L. Morrison & Co); Gilbert + Tobin (Canberra Data Centres)
Deal: Canberra Data Centres (CDC) has been acquired by H.R.L. Morrison & Co (H.R.L. Morrison).
Value: $392 million
Key players: The Allens team advising H.R.L. Morrison was led by M&A partner Tom Story and banking partner Tim Stewart. TMT sector head Gavin Smith, banking and finance managing associate Rita Pang, senior associate Jasmin Last and associates Paul Dawson and Sunny Jong also assisted on the deal.
Deal significance: CDC is an outsourced data centre provider servicing federal government agencies and private sector customers in Canberra. The company was acquired by H.R.L. Morrison on behalf of its clients Infratil Ltd (Infratil) and Commonwealth Superannuation Corporation (CSC) this month.
In exchange for cash equity consideration of $392 million, Infratil and CSC each acquired a 48 per cent shareholding in CDC, while CDC management holds the remaining 4 per cent of the business.
The acquisition was made possible by funds associated with Quadrant Private Equity and founding shareholders of CDC. The transaction was finalised with Foreign Investment Review Board approval on 14 September 2016.
A statement released by Infratil earlier this year suggested that CDC is in a good position to capitalise on growth in outsourcing, data storage and processing across the infrastructure sector.
“CDC is well positioned to take advantage of industry tailwinds. We are looking forward to supporting the company in its next phase of development,” Infratil CEO Marko Bogoievski said.
Lead Allens partner advising on the deal, Tom Story, said the investment demonstrated further growth in an emerging sector. He congratulated H.R.L. Morrison on closing the “attractive acquisition”.