Canadian firm Manulife Investment Management has announced that it has reached a definitive agreement to acquire a majority stake in Israeli data center owner and operator Serverfarm. Manulife’s investment, coupled with support from existing shareholders, will provide capital for Serverfarm to continue its expansion in North America, Europe and Israel to take advantage of attractive market opportunities.
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Serverfarm currently operates a portfolio of eight data centers in North America, Europe and Israel with over 1.5 million square feet and 125 MW of computing capacity, and it has secured additional land for future center developments of data.
No financial details of the deal were disclosed, but “Globes” understands that Serverfarm will receive $600-700 million for its shares at a company valuation of $1.5 billion. Serverfarm is part of the Red Sea group of the Papouchado family, best known for the European hotel chain it owns through Park Plaza Hotels Ltd. (LSE: PPHE).
Serverfarm Founder and CEO, Avner Papouchado, said, “Our partnership with Manulife Investment Management, an investor who shares Serverfarm’s vision for growth and customer service, will enable us to respond effectively to the next wave of demand from our existing and new customers. Our new relationship with Manulife Investment Management provides Serverfarm with additional expertise and new capital to execute on a number of attractive development opportunities and provide our clients with a long-term growth track.”
Recep Kendircioglu, Global Head of Infrastructure at Manulife Investment Management, added: “Avner and the Serverfarm team have built a portfolio of high-quality data centers and a growth platform that is well positioned to take advantage of the secular tailwinds of the data center market. We are excited about the future of the business and our ability to support Serverfarm in its next phase of growth on behalf of our customers.”
Published by Globes, Israel business news – en.globes.co.il – May 21, 2023.
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