Indian data network solutions company, Sterlite Technologies Limited (STL) announced the acquisition of British firm Impact Data Solutions (IDS Group), a data center network infrastructure design and deployment specialist. As per the agreement, STL will acquire a 100 percent stake in IDS, which has been valued at £12m (US$14.7m).
Impact Data Solutions Limited (IDS) and its affiliate are together represented as IDS Group. The firm, which is privately held, is specialized in providing design and deployment offerings for hyper scale data centers. These solutions are for cloud and colocation providers, coupled with containment solutions for ‘inside’ data centers’ infrastructure requirements. The company works with two of the four largest global cloud players.
“We are incredibly excited at the prospect of working together with STL to scale our already highly successful business operations and services to support our growing customer base. Joining the STL global platform will enable us to fast track our expansion with the quality, scale and breadth of competencies needed to meet our customers’ complex design and deployment requirements,” said Ben Parker, IDS CEO, in the press release.
According to STL, this acquisition solidifies STL’s position in the cloud and data center market and brings access to two of the top global cloud providers into its customer pool. “It is our endeavor to be more and more relevant to our customers' data network creation needs across the globe. The massive growth in data transmission and high bandwidth applications are driving a large need for edge compute and localized data center, which makes this an extremely attractive space for investment," said Dr. Anand Agarwal, Group CEO STL, in a statement.
"Ben and team have established IDS to be a very strong contender in this space, making this acquisition extremely well aligned to our stated strategy of strengthening our solutions to our Cloud Provider customer segment, and taking our Network Services Business global,” added Dr. Anand Agarwal.
The parties informed that the transaction is structured to acquire 100%. STL will buy an 80 percent stake initially. The remaining 20% will be acquired based on an earn-out model, over the next few years.