Digital Edge buys out Indonet founders to boost its majority stake

Digital Edge buys out Indonet founders to boost its majority stake

Singapore-based data centre firm Digital Edge announced on Tuesday it has increased its stake in Indonesian digital infrastructure company Indonet by acquiring all remaining shares held by Indonet’s original founders.

According to a company statement, the upsize was facilitated through an off-exchange sale of shares by Otto Toto Sugiri and the other four founders of Indonet, which provides multi-connectivity solutions, data centre, and cloud services for corporate clients. The transaction was funded through a combination of capital from Digital Edge alongside an external debt facility.

Digital Edge did not disclose the amount of the new purchase or the percentage of the stake it now holds as a result. The company bought its initial controlling stake in Indonet for US$165 million in June 2021.

Digital Edge CEO Samuel Lee said the additional investment enables the company to better leverage Indonet’s suite of dark fibre, cloud and network service assets to bolster its service offerings to its colocation customers.

It will also further consolidate Digital Edge’s position in the Indonesian market, Lee added. “We’re excited about the significant growth potential of Indonesia’s digital infrastructure market, with the domestic cloud and data centre sectors both predicted to see double digit CAGR of 28% in the coming years.”

Digital Edge broke ground on its second data centre in Jakarta in September 2022 that was scheduled to be completed by the end of this year,

Digital Edge also provides data centre and fibre services in China, India, Japan, Korea and the Philippines. The company recently contracted Juniper Networks to upgrade its data centre footprint with a full-stack suite of solutions to simplify infrastructure engineering, automate networking operations and improve operational efficiency.

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