GLOBE Telecom Inc. and partners ST Telemedia Global Data Centres (STT GDC) of Singapore and Ayala Corp. (AC) announced last Monday they have officially “sealed” the joint venture for the development, construction, and operations of data centers in the Philippines.
With the completion of the transaction, STT GDC and AC have subscribed to new shares in KarmanEdge Inc., a wholly-owned subsidiary of Globe. KarmanEdge will house the data center business of the partners.
With the deal, Globe remains as the largest shareholder in KarmanEdge with 50 percent shareholding, while STT GDC holds 40 percent, and AC, 10 percent.
The capital infusion of the new partners results in a post-money valuation in the range of $350 million. Globe will receive proceeds of $100 million from the transaction with the remaining capital injected to be utilized by the business for future expansion and growth.
“We are excited about the future of Globe in the data center space. With Globe’s deep understanding of its customers, STT GDC’s technical expertise and Ayala’s compelling business reach, this venture is poised to be a significant player in this space for years to come. Further, the transaction not only shows Globe’s commitment to delivering value to its shareholders but also proves our ability to generate and unlock value, especially within our core business,” Globe President and CEO Ernest L. Cu said.
KarmanEdge is expected to “accelerate Globe’s efforts to scale up its capacity and capability” in the data center space, banking on the expected demand from local enterprises and global hyperscalers.
Globe, through its wholly-owned subsidiary, Innove Communications Inc., has been operating data centers in the country since 2001 and has since expanded its portfolio nationwide, serving both its internal needs, local enterprises and global hyperscalers.