Ontario Teachers’ Pension Plan has agreed to sell Metronode, an Australian data centre provider, to Equinix Inc. The all-cash deal is valued at A$1.035 billion (US$791 million) and is expected to close in the first half of next year. Ontario Teachers’ acquired a 70 percent stake in Metronode as part of a June 2013 investment in its parent company, Nextgen Group Pty Ltd. Last year, the pension fund acquired the remaining interest from CIMIC Group Ltd. Over this period, Ontario Teachers’ invested A$300 million to construct and expand Metronode’s facilities, increasing fitted capacity to 21 mega-watts.
Ontario Teachers’ Agrees to Sell Metronode to Equinix Inc.
December 17, 2017
TORONTO – Ontario Teachers’ Pension Plan (Ontario Teachers’) has entered an agreement to sell leading Australian data center provider Metronode to Equinix Inc. in an A$1.035 billion all-cash transaction. Equinix is a global interconnection and data center company that operates in 48 markets across five continents. The transaction is expected to close in the first half of 2018, subject to some closing conditions including regulatory approval.
Ontario Teachers’ initially acquired 70% of Metronode in 2013 through the acquisition of its parent company, Nextgen Group Holdings, thereafter increasing to full ownership in 2016. During this time, Ontario Teachers’ directed A$300M of investment in expansion and construction of new facilities to serve growing demand from government, wholesale and enterprise customers, increasing Metronode’s fitted capacity four fold to 21mega-watts (MW).
“This investment directly fits our strategy of working with companies with strong management teams and growth prospects to add value for all stakeholders,” said Jane Rowe, Senior Managing Director, Private Capital, Ontario Teachers’. “We remain very interested in investing in Australia, and are pleased with this positive outcome for all involved including our members, Metronode, its new owner and their customers as they move forward in their next phase of growth.”
About Ontario Teachers’ Pension Plan:
The Ontario Teachers’ Pension Plan (Ontario Teachers’) is Canada’s largest single-profession pension plan, with CAD$180.5 billion in net assets at June 30, 2017. It holds a diverse global portfolio of assets, approximately 80% of which is managed in-house, and has earned an annualized gross rate of return of 10.1% since the Plan’s founding in 1990. Ontario Teachers’ is an independent organization headquartered in Toronto. Its Asia-Pacific region office is located in Hong Kong and its Europe, Middle East & Africa region office is in London. The defined-benefit plan, which is fully funded, invests and administers the pensions of the province of Ontario’s 318,000 active and retired teachers. For more information, visit otpp.com and follow us on Twitter @OtppInfo.
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Photo courtesy of Equinix Inc