Global Switch, a leading operator of large-scale data centers in Europe and Asia-Pacific, has sold a 24.99% slice of its business to Strategic IDC Limited for $2.77 billion.A consortium of six Asian institutional and private investors are behind the transaction, which also follows recent investment in Global Switch by Aldersgate Investments (a Reuben Brothers company) and Elegant Jubilee Limited (an Asia-based consortium of investors).Established in 1998, the Reuben Brothers had wholly-owned Global Switch between 2007 and 2016. Upon completion of the most recent deal, Aldersgate Investments, Elegant Jubilee and Strategic IDC will own 24.01%, 51%, and 24.99% of the company respectively. Additional minor investors in Global Switch include Haoyue Capital, AVIC Trust, Jiangsu Sha Steel Group and China CITIC Bank International.The investment diversifies Global Switch’s sources of equity and supports the company’s expansion plans as it prepares to debut on a leading international stock exchange in Europe, Asia or North America in 2019.“The investment from Strategic IDC is a testament to both the quality of the company and the tremendous strategic progress Global Switch has continued to make over the last twelve months,” said Li Qiang, Chairman of Global Switch.“The company’s strong and experienced management team, operational excellence and leading strategic position in Europe and Asia present incredible strategic growth opportunities, particularly in China,” said Ge Yajing, Director of Strategic IDC.“Having first invested in Global Switch in 2006 and supported its global growth and development during that time, we are very pleased to see the company going from strength to strength more than 12 years on,” said Alexander Bushaev, Director of Aldersgate Investments Limited.Global Switch confirmed that there would be no change to the company’s strategic direction, management or operational and financial policies. From a client perspective, all data center services and management teams will remain unchanged.In December 2017, Global Switch launched a new cutting-edge HK$5 billion data center in Hong Kong, as well as significantly progressing the construction of its Singapore Woodlands facility, which is due to be completed later this year.The company has also formed a strategic partnership with China Telecom Global (one of the world’s largest telecoms providers) and Daily-Tech (the leading data center operator in China). The agreement sparked some concern for the Australian Government amid reports that classified national information, including intelligence and defence files, were stored at Global Switch data centers which may be under Chinese control. The Australian Department of Defence has subsequently broken ties with Global Switch and transferred data to alternative facilities.
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