AMP Capital completes US data centre acquisition

Global investment manager AMP Capital, on behalf of investors in its global infrastructure equity strategy, has closed its largest equity investment in North America to date, with the acquisition of Expedient (Continental Broadband, LLC) from Landmark Media Enterprises, LLC.

Expedient is a leading US provider of cloud computing and data centre services, offering an integrated suite of colocation, cloud, managed services and network access products to a highly diverse base of over 1,200 customers. The deal is AMP Capital’s first equity investment in the data center / Infrastructure as a Service (IaaS) sector, the result of a global search spanning multiple years for a suitable point of entry.

Expedient operates 11 self-directed data centre facilities and leverages a half dozen partner facilities in order to provide critical outsourced information technology solutions to a range of businesses and industries in Ohio, Indiana, Pennsylvania, Maryland, Massachusetts, Tennessee and Arizona. The current data center footprint consists of approximately 160k square feet of space and 12.4MW of power. It provides comprehensive, value enhancing hybrid solutions supported by continuous product innovation.

As it shares a geographic footprint with Everstream, a Cleveland-based fibre provider acquired by AMP Capital in 2018, the acquisition of Expedient positions AMP Capital as a leading player in the communications sector in the Midwest.

Through Everstream, AMP Capital has been deploying additional capital into the region’s internet infrastructure: in January 2019, Everstream announced it would be investing USD300 million to expand its network footprint with 6,000 route miles of greenfield builds across the Midwest. During 2019, Everstream expanded into St Louis with the acquisition of Arch Fiber Networks; expanded into Columbus, Ohio with the completion of a fibre ring around the city; expanded into Indianapolis with the acquisition of a fibre network from DataBank; and launched its fibre network in Milwaukee, Wisconsin. 

Matt Evans, Partner, Global Head of Communications, Infrastructure Equity, says: “Ever-growing data usage and an increased focus on the quality of connectivity such as reliability, latency, symmetry – needs which are particularly acute for business and healthcare customers – are driving the expansion of the communications infrastructure sector. This sector has become one of the most sought-after for infrastructure investors, as it benefits from stable revenues while capitalising on the growth story linked to the prominence of data in modern living.

“We are delighted to have acquired Expedient, a data centre business offering high quality services across a customer base diversified by region and type. It is a transformational addition to our North America communications infrastructure portfolio.”

This landmark US investment comes as AMP Capital bolsters its senior investment team in the Americas with the appointments of Simon Ellis as Head of Americas, Infrastructure Equity and Ric Gordon, Head of Asset Management, Americas who recently joined AMP Capital from Macquarie Capital, where he led asset management for the Americas, Europe and Asia.