Shalini Lagrutta
DXN has agreed to sell off its edge module manufacturing business unit for $20 million.
The pe-fabricated modular data centre specialist will sell the unit to Flow2Edge Australia after amending a previous deal to sell all of its assets for $26 million.
If both agree to the new agreement, the deal is expected to be finalised by 15 December, leaving DXN solely with its data centre business.
DXN confirmed the deal alteration in a statement to the Australian Securities Exchange (ASX), stating that there was an "inability to satisfy the conditions precedent to the sale agreement".
Now, on completion of the amended deal, Flow2Edge will pay all accounts payable in relation to the edge module manufacturing business, leave liability for transferring employees and all other sale assets liabilities.
Last month, the deal was for all of DXN’s business assets at a price of $26 million, with its directors flagging their intent to “wind up the company” afterwards.
Speaking to ARN, DXN CEO Shalini Lagrutta said the intent is also to look at all strategic opportunities for the data centres, as well as for the DXN team, which will be the new Flow2Edge team, to grow edge modular offerings across Asia Pacific (APAC) once the deal closes.
At the announcement of the initial deal, Flow2Edge Australia’s parent company Flow Digital Infrastructure's chairman Kris Kumar spoke highly of DXN’s edge capabilities.
“The acquisition will enable us to leverage DXN’s superior edge design and construction capabilities, allow us to control our supply chain and deliver edge as-a-service in the APAC region,” Kumar said at the time.
“This is a key milestone for us as we continue to strategically invest in digital infrastructure to meet the rapidly growing demand across our markets.”
Outside of the ongoing transaction, last month DXN also launched a hosted cloud solution in collaboration with infrastructure-as-a-service provider and white label cloud platform OrionVM.
Named DXN Cloud, the solution is hosted in its DXN-SYD01 data centre, which is based in Sydney Olympic Park, with OrionVM claiming it offers customers an “easy” route to hybrid cloud with rack-to-cloud services.
