Blackstone Inc. is reportedly finalising a major acquisition of Australian data centre operator AirTrunk in a deal exceeding AUD 20 billion (USD 13.5 billion), including debt. This transaction, one of the year's largest in digital infrastructure, would significantly strengthen Blackstone's presence in the Asia-Pacific cloud services market. Blackstone outbid rivals and is now negotiating with AirTrunk's current owners, Macquarie Group and PSP Investments. The deal reflects growing investor interest in data centres, driven by increasing demand for digital services across the region. Completion of the acquisition is anticipated soon.
Blackstone Inc., a prominent global investment firm, is reportedly close to finalising a significant acquisition of AirTrunk, an Australian data centre operator, in a deal valued at over AUD 20 billion (approximately USD 13.5 billion), including debt. This potential agreement would mark one of the most substantial transactions in digital infrastructure within this fiscal year. If completed, this deal will significantly enhance Blackstone's footprint in the burgeoning Asia-Pacific cloud services market.
Sources indicate that Blackstone has emerged as the leading bidder for AirTrunk after surpassing several rival offers. Negotiations are ongoing with the current owners of AirTrunk, including Macquarie Group Ltd. and PSP Investments. These discussions are expected to yield a signed agreement as early as this week, although the terms could still shift as the parties finalise the transaction. All involved parties have declined to comment on the specifics of the negotiations, emphasising the confidentiality surrounding such high-profile corporate dealings.
To facilitate this acquisition, Blackstone is reportedly working with banks to secure a loan of AUD 5.5 billion at the holding company level. Additionally, a pre-arranged funding package of AUD 7 billion has been underwritten by four banks. Moreover, private credit funds are actively exploring the provision of at least AUD 1.5 billion in junior debt to support the acquisition. This financial strategy showcases the firm's commitment to expanding its digital infrastructure portfolio in a region that is witnessing rapid growth in data demand.
AirTrunk operates data centres across several countries, including Australia, Singapore, Hong Kong, Japan, and Malaysia. Since its establishment, the company has positioned itself as a key player in the digital infrastructure sector. Macquarie Group, which took control of AirTrunk in 2020 for approximately AUD 3 billion, has extensive experience investing in digital infrastructure, fortifying its reputation in this rapidly evolving market. Under the guidance of investment experts Ani Satchcroft and Ben Way, Macquarie has significantly contributed to AirTrunk's growth, further enhancing the company's infrastructure capabilities.
The acquisition comes at a time when the Asian cloud services market is expanding rapidly. Recent data indicates that the demand for data storage and processing is increasing due to the growing reliance on digital services and content, especially post-pandemic. Notably, KKR & Co. recently acquired a 20% stake in Singapore Telecommunications Ltd.'s regional data centre operations, highlighting investor interest in the sector.
Industry analysts suggest that acquiring AirTrunk could provide Blackstone with a strategic advantage in meeting the growing data needs of businesses across the Asia-Pacific region. With increasing internet penetration and the digital transformation of various sectors, data centres are becoming essential to support the infrastructure necessary for cloud services, e-commerce, and technology-driven businesses.
In conclusion, the potential acquisition of AirTrunk by Blackstone represents a significant investment in digital infrastructure, likely to reshape the competitive landscape of the data centre market in the Asia-Pacific region. As negotiations progress, stakeholders in the technology and investment communities will be closely watching the developments surrounding this high-stakes deal. This acquisition underscores not only Blackstone's commitment to expanding its digital portfolio but also the increasing importance of data centres in today's rapidly digitalising world.
Advertisement
Facebook
Whatsapp
