Hexatronic Group AB and STL (NSE: STLTECH) have separately announced an agreement through which Hexatronic will acquire 90% of the shares in Impact Data Solutions Ltd. (IDS) from a combination of STL subsidiary Sterlite Global Venture Ltd. of Mauritius and the founders of IDS. Benjamin Parker, CEO of IDS Group will retain the remaining 10%.
The purchase price was not disclosed, although Hexatronic described the price tag as having “no significant impact on Hexatronic’s earnings.” STL said that the deal includes an initial consideration and an earn-out upside of undisclosed size. The all-cash acquisition will be completed on October 3, 2022. Hexatronic will have the option of acquiring Parker’s 10% share between 2026 and 2029.
IDS Group offers consultation, design, and installation of fiber, copper, and containment products for data center and colocation projects. IDS also operates a managed services division that supplies engineering to support “smart hands” services such as racking, stacking, cabinet placement, patching, and auditing. Based in London, IDS employs approximately 40 people. The company serves customers across EMEA with revenues of approximately GBP13 million.
The acquisition provides a European complement to U.S.-based Data Center Systems (DCS), which Hexatronic acquired in September 2021.
“We are very pleased to welcome IDS to Hexatronic Group. IDS has a proven track record of working with the most demanding data center customers and will play a key role in growing Hexatronic’s data center business,” said Henrik Larsson Lyon, CEO of Hexatronic Group.
“Joining Hexatronic Group AB is a momentous event for IDS. Increasing the already expansive footprint across EMEA, with Hexatronic and DCS we are now able to offer our services truly globally. Our unique pedigree in design, IT infrastructure builds, smart hands services, and Vulcan Global Containment is recognized and used daily by the world’s leading corporations and by the largest hyperscale data center operators. The move to be part of Hexatronic will strengthen our position to become a global market leader in data center services.”
STL positioned the sale as an opportunity to focus on its core business. "As we take our company towards focused growth in this decade of network creation, our efforts and capital allocation will be fully aligned towards optical and global services businesses,” said Ankit Agarwal, managing director of STL. “We will continue to calibrate and realign our portfolio to enhance profitability, increase shareholder value, and drive towards our purpose of transforming billions of lives. We are proud of the value that we have co-created with IDS and wish them the best for the future."
For related articles, visit the Business Topic Center.
For more information on high-speed transmission systems and suppliers, visit the Lightwave Buyer’s Guide.
To stay abreast of fiber network deployments, subscribe to Lightwave’s Service Providers and Datacom/Data Center newsletters.