KKR to invest $400m in subsea cable services provider OMS Group
Thu 2 Nov 2023
KKR and the parent company of OMS Group have signed definitive agreements under which KKR will commit $400 million in a tailored solution for OMS Group.
This marks KKR’s latest digital infrastructure investment in Southeast Asia, underlining its conviction in the role digitalisation plays in the region’s burgeoning internet economy.
Mr Projesh Banerjea, Director of Infrastructure at KKR, said: “OMS Group has established itself as a market leader with a longstanding track record of success and growth in Southeast Asia.”
Founded in 1988, OMS Group is a neutral provider of integrated solutions for subsea telecommunications cable services, including installation and maintenance projects.
The investment will help OMS Group expand its fleet size and capabilities.
Datuk Soon Foo Lim, OMS Group’s Chairman, said: “OMS Group and KKR share the same vision and appreciation of critical data infrastructure.”
KKR’s tailored solution for OMS Group is expected to create strong adjacencies with KKR’s recent digital infrastructure investments and build on long-term secular tailwinds in the region, including increased data consumption, enterprise cloud needs, a focus on digitalisation by governments, and a booming digital economy.
Mr Ronnie Lim, Group CEO of OMS Group, said: “OMS Group is in a stronger position to support its clients to build and maintain greater global connectivity.”
KKR is making this investment primarily from its Asia infrastructure strategy. This transaction adds to KKR’s track record of investing in digital infrastructure regionally and globally.
The transaction is expected to be completed by Q1 of 2024, subject to customary closing conditions. Additional details of the transaction were not disclosed.
Past KKR investments in Southeast Asia digital infrastructure have included the regional data centre platform of Singtel, and Pinnacle Towers, a digital infrastructure platform in Asia with a strong focus on the Philippines.
Globally, KKR’s investments in digital infrastructure have included CyrusOne and Global Technical Realty.
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