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Digital 9 looking at six data centres as it plans to raise £200m

Jack Waters 995x560.jpg

Infrastructure manager Digital 9 is looking at investments worth £670 million in the short term, and a total of £1.85 billion over the next 12 months.

The company, which owns subsea operator Aqua Comms and data centre company Verne Global, announced these figures this morning when it announced plans to raise £200 million on the London Stock Exchange.

That sum is on top of the £475 million Digital 9 has raised already in six months – £300 million through an initial public offer in March and the rest through a share placing in June. Digital 9 is chaired by Jack Waters (pictured), former COO of Zayo until its $14.3 billion acquisition in 2020. 

Digital 9 has not detailed its plans for the new investment, except to say the £670 million pipeline “includes a further six data centre investments opportunities with an aggregate value of approximately £188 million”.

Those six include “a premier metro data centre based in the UK for which the company has secured exclusivity”.

In July Digital 9 announced plans to build the Europe Middle-East India Connect 1 (EMIC-1) cable, to be managed by Aqua Comms. It is due to be ready for service in 2022, but Digital 9 has not announced details such as partners, landing points or capacity.

The company’s share price went down about 5% on the announcement of the share placement this morning, from £1.15 on Friday’s close to just over £1.10.

“The company is targeting gross proceeds of approximately £200 million, which could be exceeded subject to demand,” Digital 9 said this morning.

“The net proceeds will be used to acquire further assets in line with the company's investment objective. The company has a current immediate pipeline of more than £670 million worth of investment opportunities.”

Digital 9 uses Triple Point Investment Management as its investment manager. Triple Point is run by Thor Johnsen, who is a director of both Digital 9 and Ontix, the small-cell company expected to be a later acquisition.

 

 

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