Star Capital hires Jefferies for Datacenter One exit

Gustav Hoejmark-Jensen and Johannes Koch
16 February 2022

Tweet
Facebook
LinkedIn
Google plus
Send to

Star Capital has mandated Jefferies to advise on its exit from a majority position in co-location and datacentre services provider Datacenter One, two sources familiar with the situation said.

The company is likely to be marketed based on EBITDA of EUR 15m, two sources familiar said.

European datacentre assets have seen increased multiples as demand for data storage and flexible co-location services intensifies, with sector deals in the Nordic region commanding high price tags recently.

Azrieli Group's acquisition of Norway-based Green Mountain from the Smedvig family office was priced at USD 631m, as reported by Unquote sister publication Mergermarket – this equated to a 20-25x multiple. Norway-based Digiplex sold for EUR 520m (around 20x EBITDA) to IPI Partners, as reported.

Datacenter One targets major German cities, providing modern, highly secure and energy-efficient facilities via a modular-build approach that allows facilities to be quickly designed, delivered and extended, according to the sponsor's website.

Datacenter One has 8,500 sqm of datacentre space across two sites in Stuttgart and one each in in Dusseldorf and Leverkursen, according to the company's website. The larger sites have expansion potential: DUS1 could be expanded from 3,600 sqm to 10,000 sqm, or 20 MW, and carries an EN 50600 level 3 rating. LEV1 could be expanded to 6,000 sqm and 12 MW in output, and holds the same EN level 3 rating.

Star Capital acquired a majority stake in the business – then called GlobalWays – in 2016 via its Star III fund, but renamed it in 2017 to emphasise its datacentre capabilities.

Star III closed in 2017 on its hard-cap of EUR 800m and the fund has so far made no divestments, according to Star Capital's website.

Datacenter One, Star Capital and Jefferies did not respond to requests for comment.