Global Switch could split up data centre operations to revive $6 billion sale
Written by Rebecca Uffindell Tue 8 Aug 2023
The owners of Global Switch could consider carving up the data centre group to revive a sale that could rake in £4.7 billion ($6 billion).
Stakeholders of the UK-based company have deliberated selling Global Switch operations in Europe and Asia Pacific to different buyers in separate deals. According to sources speaking to Bloomberg, each division could be valued at £2.3 billion ($3 billion).
The source said that the original £7.8 billion ($10 billion) asking price for the entire data centre group caused hesitation, as some buyers were ‘keen on only parts of the business’. Splitting the business could boost the likelihood of a sale.
Global Switch could also separate its Australia business from the Europe and Asia Pacific operations. The company’s owners, including Chinese steelmaker Jiangsu Shagang Group Co. and Avic Trust Co., have discussed different options and could relaunch the process in the coming months.
In January 2023, Global Switch’s owners and potential bidders failed to bridge a value gap from the original $10 billion sought by the sellers. Private equity firms EQT AB, KKR & Co. and PAG were among the final bidders competing to acquire Global Switch.
Global Switch, Jiangsu Shagang Group, and Avic Trust have not yet commented on the potential sale.
Founded in 1998, Global Switch operates 13 data centres across Europe and Asia Pacific, spanning 428,000 square meters.
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Written by Rebecca Uffindell Tue 8 Aug 2023