Hexatronic Group announced that the company is entering the data center market through the acquisition of US-based Data Center Systems which is expected to generate an EBITDA of approximately USD 3 million this year. The acquisition is subject to customary closing conditions and is expected to close in October.
20 years in the market
Data Center Systems was in the US data center market for 20 years and provides complete fiber connectivity system solutions including infrastructure design solutions, installation, and managed services. The company has over 100 employees and mainly serves telecom, financial, and technology companies.
The duo will make a joint election, permitting the transaction to be treated as an asset purchase for tax purposes. The acquisition is financed by a senior bank loan from Danske Bank. Henrik Larsson Lyon, CEO of Hexatronic Group said,
“We are very pleased to welcome the team of DCS to Hexatronic Group. A highly skilled team dedicated to a consultative approach to ensure the best network performance possible. They also share our view of the value of providing complete system solutions and has taken it one step further by adding several services.
With DCS, Hexatronic enters the US market for data centers that is expected to experience continued growth. Ever increasing data traffic as well as the trend towards edge computing increase the need for both larger hyperscale data centers as well as small and mid-sized data centers closer to the edge.
The US is today Hexatronic’s largest market, and one of three strategic growth markets. With the acquisition of DCS we are now able to provide customers with locally assembled and terminated products for Hexatronic’s complete FTTH-solution, which will shorten turnaround times and increase flexibility, and on top of that offer DCS’s expertise in assembly design and advisory service. DCS’s production in the US will complement our current connectivity productions in Sweden, Estonia, and the UK.”