Carrier Connect Data Solutions Inc. has completed its previously announced acquisition of all outstanding share capital of Nexion W1 DC Pty Ltd. (the “Target”) from Nexion Group Ltd. (the “Vendor”) pursuant to the terms of a share purchase agreement.
The Target operates a 2 Megawatt Tier II/III data center in Perth, Australia servicing the Asia Pacific region. The acquisition marks a significant milestone in the Company’s international expansion strategy, positioning the Company as a growing consolidator of data center infrastructure globally.
Under the terms of the Agreement, Carrier acquired 100% of the issued and outstanding shares of the Target for an aggregate purchase price of AUD $2.5 million, comprised of: (i) AUD $200,000 in cash paid at closing; (ii) AUD $100,000 payable six months following closing; and (iii) AUD $2.2 million under a secured vendor financing arrangement, repayable over a 25-year term at 9% interest.
“The Perth closing represents a major step forward in our strategy to build a global portfolio of Tier II/III data centers. The Nexion W1 facility strengthens our presence in the Asia-Pacific market and complements our Vancouver-based operations, allowing us to better serve AI companies and co-location enterprises across multiple geographies,” remarked Mark Binns, Chief Executive Officer of the Company. “We have also added sticky monthly recurring revenue of AUD ~$65,000 and a completely built-out data center capable of generating up to AUD ~$350,000/month in revenue without any new capital investment. Today, and going forward, Nexion W1 represents an excellent growth opportunity, sitting at less than 20% rack utilization.”
The Company also entered into certain post-closing agreements with the Vendor to ensure continuity of operations and support during the integration period, including a management services agreement and master customer agreement.
