Data center platform Digital Edge announced plans to expand its regional footprint to South Korea by entering into a definitive agreement to acquire Sejong Telecom’s data center assets in an all-cash transaction.
To strengthen its regional platform
Digital Edge will acquire one data center in Gangnam, Seoul, and a Cable Landing Station facility in Centum City, Busan. The addition of these strategic assets, including their associated operations and customers, will further strengthen its regional platform.
Samuel Lee, Chief Executive Officer of Digital Edge, said,
“With our US$1 billion capital commitment to build the Digital Edge Platform in Asia, we are excited to announce the plan to enter into the Korean market, following our initial investments in data centers in Japan. Korea is one of the fastest-growing markets in Asia with the most advanced digital infrastructure. This transaction provides a great opportunity for multinational companies, as well as Korean businesses, to leverage Digital Edge’s platform to increase their digital footprint in Korea by interconnecting to a rich ecosystem of customers and partners in all key facilities in Seoul and Busan.”
This transaction will allow Digital Edge to immediately offer interconnect and data center solutions in the fast-growing Korean market and establish a solid foundation for future expansion in Seoul and Busan. Sejong Telecom’s data centers are strategically located and bring a wealth of connectivity options from existing customers. Digital Edge plans to invest additional capital in expanding the capacity and improving both facilities’ energy efficiency. Between the transaction and subsequent expansions, Digital Edge expects to invest over US$120 million.
As part of the transaction, Sejong Telecom and Digital Edge have also entered into a long-term strategic partnership to bring innovative products and services to the marketplace to meet domestic and international customers’ expectations. The transaction is expected to close in the second quarter of 2021 and is subject to customary closing conditions and regulatory approvals.
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