Portfolio update for Cordiant Digital Infrastructure


Cordiant Digital Infrastructure (CORD) has announced that its Czech portfolio company, České Radiokomunikace (CRA), has agreed to acquire a pair of businesses from Aricoma in the data centre and cloud services market, Cloud4com and DC Lužice.

The transactions represent a significant advance in both the scale and capability of CRA in the Czech Republic’s fast-growing data services market while also clearly demonstrate the implementation of the company’s “Buy, Build and Grow” model.

Cloud4com is being acquired for an initial consideration of CZK 870 million (£30.5 million), subject to customary adjustments and with a further amount payable up to a maximum of CZK 485 million (£17.0 million), depending on Cloud4com’s EBITDA for the year ended 31 December 2024. DC Lužice is being acquired for CZK 130 million (£4.6 million), also subject to customary adjustments. Both businesses are unlevered.

The purchase consideration for the transactions is being funded by CRA from its existing cash resources with no financing required from CORD.

Cloud4com is a leading cloud services provider in the Czech Republic, providing private cloud and associated services for enterprise customers. These cloud services are enabled by Virtix, a software platform developed in-house by Cloud4Com. For the financial year ending 31 December 2023, Cloud4com is expected to generate revenue of CZK 155 million (£5.4 million) and EBITDA of CZK 44.6 million (£1.6 million), both unaudited. DC Lužice is a Tier III data centre facility strategically located in the “digital Danube” triangle, that is centred on Brno-Vienna-Bratislava. The facility, which is owned and has 85 racks, is currently 32% utilised, newly renovated and located in a highly secure private site.

Commenting, Steven Marshall, chairman of Cordiant Digital Infrastructure Management said:

“We are delighted to have agreed to acquire these attractive data centre assets, which are being funded by organic cash flow at CRA. These transactions are highly complementary to CRA’s existing data centre and cloud businesses, enhancing CRA’s market leading position in its respective areas of operations and further demonstrating our active management approach through our ‘Buy, Build and Grow’ strategy.”

Commenting, Benn Mikula, CEO of Cordiant Capital said:

“These acquisitions mark an important step in CRA’s continued growth in the Czech data centre and cloud services market. They add capabilities and capacity to an already strong team. This market segment is increasingly important to CRA’s revenue mix.”

Commenting, Miloš Mastník, CEO of CRA said:

“These transactions are an important milestone for CRA as we continue to diversify our operations into high growth areas such as data centres and cloud services. Cloud4com has achieved a leading market position in the Czech Republic and we see a clear strategic fit and synergistic value in adding Cloud4com and DC Lužice to CRA. We expect these assets to contribute strong revenue growth going forward and we anticipate capturing margin expansion due to increasing operating leverage. We look forward to working with the Cloud4com management team to further develop and grow the combined data centres and cloud businesses and cement CRA’s leadership position in that area of the market.”

CORD : Portfolio update for Cordiant Digital Infrastructure

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