Joe Demase (5G Networks)
5G Networks continued its acquisition spree with the purchase of Servers Australia's North Sydney data centre (NSDC) for $2 million.
The deal marks the Melbourne-based carrier’s third major data centre acquisition in a year, bringing its total rack numbers up to 720.
Owned by Servers Australia and based in St Leonards, NSDC last year generated $1.3 million revenue and EBITDA of $750,000.
It currently houses more than 120 data centre racks with a utilisation of 32 per cent, meaning 5GN will required to invest $500,000 required to bring the site up to full capacity.
5GN paid all-cash for the centre and has claimed the deal will increase its wholesale channel strategy for infrastructure and data centre services.
“It will also open new opportunities by offering its national data network and cloud services to existing NSDC customers who include carriers, hardware vendors and managed IT providers,” the publicly listed carrier told shareholders.
“Continued focus on growth through profitable enterprise services underpins this strategic acquisition,” 5GN CEO Joe Demase said.
“The Sydney market is well supported by several larger tenants, who have a significant appetite for data centre space, as a result of the growing requirement for digital infrastructure to support the explosive adoption of cloud services.”
5GN has used acquisitions to aggressively grow its country-wide footprint since March 2018 when it acquired fellow Australian telco Asia Pacific Telecommunications Group (APTel) for $6 million.
Since then it has made a major play for data centre rack space, acquiring Melbourne Data Centre (MDC) for $5.7 million in March 2019 and Sydney’s Australian Pacific Data Centres (APDC) five months later.
Combined the three data centre acquisitions will add up to $11.2 million spent by 5GN since last year.
Now, the telco has made its first foray into the channel by launching a new partner program under the leadership of ex-Hostopia manager Nigel Burke.
