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DXN acquires Darwin-based secure data centre for $4.6 million AU

Written by Thu 16 Sep 2021

DXN Limited, a leading provider of innovative modular data centre solutions, has entered an agreement to acquire a data centre in Darwin in the Northern Territory in Australia. Secure Data Centre (SDC) provides data centre services to local, regional and federal governments, as well as customers in telecommunications and managed services providers.

The SDC is said to be “the only continuously maintainable data centre in the Northern Territory of Australia.” It currently operates 70 racks of servers but has the capacity to expand to 127 racks.

The two parties have agreed to a $4.6 million AU cash transaction, with an additional $200,000 in shares of DXN stock. DXN has also agreed to keep the current vendors on as operators of the SDC Darwin data centre for the next three years. The vendors, Paul and Tracey Grist, will continue to operate the data centre and provide continuity for customers, contractors and staff.

“The agreement is another example, following the acquisition of DC3 from Tasmanet in February 2020, of how DXN will deliver on its vision to develop and grow EDGE ada centres,” said Matthew Madden, CEO of DXN.

“Our goal is to continue to expand our carrier-neutral edge data centre footprint in Australia, the South Pacific, and Southeast Asia. This is expected to include fully-owned facilities and facilities built or managed on behalf of third-party owners.”

DXN Limited appears to be recovering from some disappointing financial results released in June 2020, when the company posted a loss of $13 million AU. Then, in March 2021 DXN won lucrative contracts to build modular data centres for Boeing Defence Australia and Covalent Lithium, totalling $1 million AU. Shortly after, the company won the attention of private investors, including a $528,000 investment from Armytage Investors.

The company is now growing their business, with the purchase of a data centre from Tasmanet last year, and the new acquisition of the Darwin-based Secure Data Centre.

Paul Grist, MD of Secure Data Centre (SDC) said of the acquisition, “the agreement with DXN helps us realise the potential for SDC. In connecting with a national and international network, SDC will become a gateway into the Northern Territory. We are really proud of what we have achieved but are very excited about the journey ahead.”

Written by Thu 16 Sep 2021


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