HRL Morrison & Co. is in discussions to acquire Ark Data Centres Ltd., in a deal that could value the UK business at about £2.5 billion ($3 billion), people with knowledge of the matter said.
(Bloomberg) — HRL Morrison & Co. is in discussions to acquire Ark Data Centres Ltd., in a deal that could value the UK business at about £2.5 billion ($3 billion), people with knowledge of the matter said.
The New Zealand-based infrastructure investor is among the final bidders seeking to acquire Ark, according to the people, who asked not to be identified because the information is private. At least one other suitor is also competing for the business, which is controlled by Elliott Investment Management, the people said.
While discussions are in the advanced stages, no final agreements have been reached and another winner could still emerge, the people said. Representatives for Morrison and Elliott declined to comment, while a spokesperson for Ark couldn’t immediately be reached for comment.
A sale of Ark would add to a flurry of transactions involving data centers, as more investors seek take advantage of booming demand for cloud services. DigitalBridge Group Inc. is considering the sale of a minority stake in Vantage Data Centers, Bloomberg News reported this week. Billionaire Patrick Drahi is also exploring interest in a portfolio of data centers he owns in France.
London-based Ark is among the largest data center operators in the UK and offers cloud and connectivity services across a range of customers. The company was founded in 2005.
Morrison is an alternative asset manager that specializes in infrastructure investments. The group oversees more than $18 billion and has invested in everything from data centers to airports across Asia Pacific, Europe and the US, according to its website. It was an early investor in data centres.
Will Smales, Morrison’s chief investment officer, told Bloomberg News last year that cloud-based technology and software services were areas of focus for the fund manager.
–With assistance from Thomas Seal and Harry Brumpton.
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