EdgeConneX acquires Global Data Center from Herzliya - transaction is estimated at $ 300-400 million

EdgeConneX, which specializes in the establishment and operation of data centers, acquires Global Data Center from Herzliya Pituach, which operates data centers in Israel. The companies did not disclose the purchase amount, but Calcalist has learned that the value of the transaction is estimated at $ 300-400 million.
When the transaction is completed, the acquisition will add two facilities to EdgeConneX's global data center platform - in Herzliya Pituach and Petah Tikva. Jeffries Investment Bank served as the sole advisor to Global Data Center and financially accompanied it during the transaction.
Moshe Lesman, CEO and founder of the company: "What is important about this acquisition is that the data center market has been developing greatly in Israel over the past year. These are processes that began 3-4 years ago, and it is not hidden from international investors who have identified Israel as a destination. It was important to us that whoever owned the company would be a strategic investor, not just a financial one. It is a company that runs dozens of similar centers around the world, and it gives great value to us and our customers. I will continue to run the company, which will be a branch of an international company. We could have spent more money on a sale to a financial entity, but we chose otherwise. "
Lesman adds that following the purchase, additional centers will be established in Israel, since "the buyer is not doing this to maintain the existing one but to expand significantly. We have two centers - in Petah Tikva and Herzliya Pituach, each of which has an area of ​​7,000 square meters. Large enterprises - insurance companies, banks and large technology companies. In fact, the site in Herzliya is already full and we are expanding it. The entire site in Petah Tikva is leased before we finished building, and we also have expansion plans there. The entry of EdgeConneX will provide momentum. "There are a lot of local companies that care about international geography, and that's an important advantage for us."
Global Data Center provides hosting for operational computer units, full business continuity and disaster recovery. The company's customers include companies in the field of finance, government organizations and start-ups.
"I am pleased to announce the expansion and increase of EdgeConneX's global presence in the Middle East through the acquisition of Global Data Center," said Randy Brockman, CEO of EdgeConneX. "As far as Israel is concerned, Global Data Center's experienced management team, proven operational capability and existing infrastructure will help us accelerate our response to these requirements through a ready-made solution based on a quality platform, which has already been well proven in the local market."
Global Data Center was established in 2013 by Mark, co-sponsored and financed by Viola Partners of the Viola Group and Leon Glenrock Group of Leon Recanati. Laman previously served as Director of the Outsourcing Division at IBM Israel and as Director of HP Global Services in Israel. The data centers in Herzliya Pituach and Petah Tikva meet the global Tier 3 Uptime standard adopted by the world's most advanced data centers. According to estimates, the Viola Fund, which owns 67% of Global Data Center, is expected to post an impressive return on investment in the company and receive a return of about $ 250-200 million on a low investment. To date, Global Data Center has invested hundreds of millions of shekels in the construction of its two centers.
EdgeConneX, financially backed by EQT Infrastructure, one of the largest infrastructure funds in the world, adds significant financial and professional resources and rich experience in digital infrastructure to Global Data Center. "Israel is attracting international players who are turning it into an international hub of cloud computing. The deal we are announcing today illustrates the confidence in the potential of the local market," said Harel Beit-On, co-founder and general partner of the Viola Foundation. "As early investors in Global Data Center, who hold a significant percentage in the company, we have been following the development of the data center market for the past seven years and we believe that EdgeConneX's entry into Israel will continue to drive growth in the field.