Data Center Firm iseek Bought Out for $400 Million

Data center operator iseek is set to be acquired by asset manager HMC Capital for a substantial $400 million, marking a significant step in the growth of both companies in the data center and infrastructure sectors. The acquisition adds a critical layer to HMC Capital’s expanding portfolio, following the recent announcement of its plans to acquire Global Switch Australia for $1.9 billion. These moves highlight HMC’s strategy to bolster its presence in the rapidly expanding data center market, driven by the increasing demand for cloud computing, digital services, and scalable data storage solutions.

iseek currently operates a robust network of seven co-location data centers located in key Australian regions including Queensland, South Australia, and New South Wales. These facilities offer a total of 6MW of installed IT capacity, providing essential infrastructure for over 500 customers, including businesses that rely on secure, high-performance data hosting and management services. The company’s long-term growth plans include expanding its IT capacity to a notable 34MW, positioning iseek for a significant scale-up in operations to meet the growing demand for its services.

The acquisition will be integrated into DigiCo Infrastructure, a newly established real estate investment trust (REIT) that is expected to list on the Australian Securities Exchange (ASX). DigiCo Infrastructure will oversee an expanded network of 13 tier 1 and tier 2 hyperscale and co-location data centers across both Australia and North America. This strategic move not only enhances HMC Capital’s foothold in the data center industry but also helps DigiCo Infrastructure position itself as a leading REIT in the global digital infrastructure market, poised to benefit from the continued growth of cloud technologies, e-commerce, and digital transformation initiatives.

In a joint statement, iseek’s CEO Scott Hicks and founder/executive director Jason Gomersall expressed their confidence that the deal would serve as a catalyst for accelerating the company’s next phase of growth. They noted that a significant portion of the acquisition proceeds would be taken in scrip for DigiCo Infrastructure’s upcoming IPO. This move is a testament to their strong belief in the REIT’s long-term investment strategy and its potential for growth, underpinned by a portfolio of critical data center assets in high-demand regions.

The combination of iseek and Global Switch Australia’s assets under DigiCo will create a formidable infrastructure portfolio that is well-positioned to meet the surging demand for data storage and processing. The growing reliance on digital services, especially in industries like finance, healthcare, and telecommunications, means that businesses are increasingly turning to secure, efficient, and reliable data hosting solutions. DigiCo Infrastructure’s expanded reach will allow it to tap into both local and international markets, benefiting from economies of scale while providing customers with high-quality data center services that support business continuity and digital transformation initiatives.

For HMC Capital, the acquisition further strengthens its position as a key player in the data center and infrastructure space, signaling its commitment to capitalizing on the growth of digital infrastructure. This acquisition aligns with the broader trend of investors seeking exposure to the data center sector, which continues to be a high-demand, high-growth area, driven by the global digital economy.

As DigiCo Infrastructure prepares for its IPO and works to integrate these newly acquired assets, the company’s leadership is optimistic about the future. The successful acquisition of iseek and Global Switch Australia will lay the foundation for significant expansion in the coming years, as the world increasingly looks to digital infrastructure to power innovation, communication, and business operations across industries.