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Highlights
- HMC Capital acquires iseek to expand its digital infrastructure platform.
- Acquisition supports the formation of DigiCo Infrastructure REIT with $4 billion AUM.
- Expansion includes data centre assets in both Australia and North America.
In a strategic move to bolster its digital infrastructure offerings, HMC Capital Ltd (ASX:HMC) announced the acquisition of the Australian-based co-location data centre operator iseek. This $400 million transaction aligns with HMC’s broader ambition to establish a Global Digital Infrastructure Platform, branded as DigiCo.
The acquisition comprises an upfront cash payment of $150 million and an additional $250 million in scrip through the DigiCo REIT initial public offering (IPO). As part of the agreement, iseek's major shareholders, including its founders, have committed to escrow a significant portion of their holdings, with conditions tied to the release of financial results for the fiscal years 2025 and 2026. This arrangement underscores the long-term growth potential that HMC envisions for the DigiCo platform.
This acquisition marks a significant milestone for HMC, adding a total of $2.5 billion in strategic operating assets within Australia. In parallel, HMC is conducting exclusive due diligence on an additional $1.6 billion in data centre assets across North America. These acquisitions together are set to establish an ASX-listed DigiCo Infrastructure Real Estate Investment Trust (REIT) with over $4 billion in assets under management (AUM). DigiCo REIT aims to serve as a global operator, developer, and owner of data centre facilities, targeting a diversified portfolio that includes stabilised, value-added, and development assets.
According to David di Pilla, the managing director and CEO of HMC Capital, acquiring iseek is pivotal in strengthening DigiCo's market position. Di Pilla highlighted iseek’s well-established footprint in the co-location data centre sector, which caters to a wide range of clients across government, enterprise, and hyperscale sectors. This acquisition complements HMC’s recent purchase of Global Switch Australia, further diversifying its geographic and customer base.
HMC’s DigiCo platform will benefit from over 100 dedicated professionals across iseek, Global Switch Australia, and StratCap, providing strong operational and technical expertise. This team, combined with HMC’s strategic acquisitions, aims to deliver institutional-grade digital infrastructure to markets in Australia and North America, offering exposure to a stable and scalable portfolio of assets.
Set to finalize by the end of the calendar year, the DigiCo REIT positions itself to capitalize on growth in the digital infrastructure space. With the backing of a global portfolio, HMC is well on track to fulfill its vision of building a high-value digital infrastructure platform with a competitive global reach.
