HMC Capital to buy data centre group Global Switch Australia in $1.3 billion deal

(Reuters) -Asset manager HMC Capital will acquire Global Switch (NYSE:SWCH) Australia in A$1.94 billion ($1.29 billion) deal, the Australian firm said on Thursday, as the company looks to tap into the booming data centre sector.

The firm, founded and backed by banker-turned-investor David Di Pilla, will raise A$300 million at A$8.75 per share to fund the acquisition.

HMC Capital’s takeover comes as a Blackstone-led consortium recently acquired larger data centre group AirTrunk for over A$24 billion.

In recent years, HMC Capital has been involved in several high-profile deals, including the reverse listing of pharmacy giant Chemist Warehouse via Sigma Healthcare (SIG.AX), in which it holds a stake

The global surge in demand for data centres, driven by the rise of artificial intelligence, has prompted HMC to expand into infrastructure-style investments.

Last year, the alternative asset manager acquired US-based digital infrastructure asset manager StratCap, and has said it is exploring a data centre REIT.

Global Switch Australia owns two large-scale developments in inner Sydney, which HMC will acquire from Global DigiCo Platform.

($1 = 1.5072 Australian dollars)