20 December 2023
LEI: 213800T8RBBWZQ7FTF84
Cordiant Digital Infrastructure Limited
CRA agrees to acquire Cloud4com and DC Lu?ice
Cordiant Digital Infrastructure Limited (the "Company" or "CORD"), an operationally-focused, specialist digital infrastructure investor, is pleased to announce that its Czech portfolio company, ?eské 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 Lu?ice (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 Lu?ice 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 Lu?ice
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 Lu?ice 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, Milo? 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 Lu?ice 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 or contact:
| Cordiant Capital Inc. Investment Manager Stephen Foss, Managing Director | +44 (0) 20 7201 7546 |
| Celicourt PR Adviser Philip Dennis / Felicity Winkles / Ali AlQahtani | +44 (0)20 7770 6424 |
| Aztec Financial Services (Guernsey) Limited Company Secretary and Administrator Chris Copperwaite / Laura Dunning | +44 (0) 1481 749700 |
| Investec Bank plc Joint Corporate Broker Tom Skinner (Corporate Broking) Lucy Lewis / Denis Flanagan (Corporate Finance) | +44 (0) 20 7597 4000 |
| Jefferies International Limited Joint Corporate Broker Stuart Klein / Gaudi Le Roux | +44 (0) 20 7029 8000 |
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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