Infratil acquire an 80% stake in Console Connect, which is a subsidiary of HKT Limited, a leading telecommunications company in Hong Kong, for US$160 million.
Console Connect is a top-3 global software-defined interconnection platform offering next-generation automated connectivity solutions. The Console Connect platform makes connecting to data centres, partners, clouds, and other applications simple and secure, with fully automated switching and routing.
Console Connect has been a top 10 Tier 1 network globally for the last 5 years, serving ~17% of all internet traffic and reaching over 150 countries. Integration with an owned Tier 1 IP network, as well as long-term integrated access to a global backbone network, provides a clear point of differentiation for Console Connect given its extensive network coverage and superior unit economics.
Infratil will also enter into a strategic partnership with HKT, with both jointly investing up to US$295 million over a 2-year period following completion of the acquisition to accelerate Console Connect’s growth through:
- Joint sales and marketing via an HKT-supported approach to offer critical fibre infrastructure and IP access to its existing and new enterprise & wholesale customers.
- Investment in new subsea cable systems and network development to increase Console Connect’s network capacity, resiliency, and reach.
Infratil CEO, Jason Boyes, said the investment in Console Connect builds Infratil’s presence in Asia and is complementary to its digital infrastructure investments globally, which include CDC Data Centres, One NZ, Kao Data in the United Kingdom, and Clearvision Ventures in the US.
“Console Connect is a leading global software-defined interconnection platform, and this acquisition is a continuation of our conviction in the tailwinds of the digital infrastructure sector. It enables us to invest in building a next generation platform to support underlying growth in the demand for digital infrastructure and global connectivity solutions by enterprise and wholesale users”.
HKT’s Group Managing Director, Susanna Hui, said: “Over the past few years, the team at Console Connect has successfully developed it into a world leading platform. We are pleased to have found a like-minded partner in Infratil who is excited about the potential opportunities to continue growing Console Connect. Our partnership around Console Connect, investing in the platform as a standalone operation, will deliver material benefits to the business as well as to HKT shareholders through unlocking value and further developing economies of scale.”
