Digital Edge (Singapore) Holdings Pte. Ltd. (“Digital Edge” or “Company”) announced today that the company plans to acquire Sejong Telecom’s data center assets in an all-cash transaction by signing a definitive agreement to expand its regional footprint to South Korea.
After the transaction is completed, Digital Edge will acquire a data center in Gangnam, Seoul and a cable landing station facility in Centum City, Busan. The addition of these strategic assets, including its related businesses and customers, marks the company’s first entry into the Korean market and further strengthens its regional platform.’
The transaction will enable Digital Edge to immediately provide interconnection and data center solutions in the fast-growing South Korean market, and lay a solid foundation for future expansion in the two metropolises of Seoul and Busan.
Sejong Telecom’s data center is strategically located and can bring a wealth of connectivity solutions to existing customers. Digital Edge plans to invest more money to expand capacity and improve the energy efficiency of the two facilities. Between this transaction and subsequent expansion, Digital Edge is expected to invest more than US$120 million.
Over the years, global cloud computing, content and network service providers have expressed a strong desire for more flexible and cost-effective interconnection solutions in the Korean market.
As part of the transaction, Sejong Telecom and Digital Edge have also reached a long-term strategic partnership to bring innovative products and services to the market to meet the expectations of domestic and foreign customers in Korea.
Digital Edge CEO Samuel Lee said: “We are committed to investing US$1 billion in capital to build the Digital Edge platform in Asia. We are very pleased to announce our plans to enter the Korean market following our initial investment in data centers in Japan. South Korea is a fast-growing market in Asia.
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One, has a very advanced digital infrastructure. This transaction provides a good opportunity for multinational companies and Korean companies to use the Digital Edge platform to interconnect with a rich ecosystem of customers and partners through all key facilities in Seoul and Busan To expand their digital footprint in South Korea.”
Yoo Ki-yoon, President of Sejong Telecom, said: “Our cooperation with Digital Edge will further accelerate the digital transformation opportunities for Korean corporate customers. We look forward to connecting the rich data center platform access channels of Digital Edge interconnection solutions with Sejong Telecom’s advanced network connections. Combined to provide a wider range of cloud computing and network empowerment solutions.”
Yongsuk Choi, Chief Infrastructure and Data Center Operations Officer of Digital Edge, said: “The acquisition of these strategic assets in Korea will form the solid core of our mature regional platform. It is expected to make Digital Edge a credible and reliable data center and interconnection service in Korea.
The provider has high-quality assets in Seoul and Busan, while building a huge diversified ecosystem of Korean and multinational companies. In addition, it also opens an important channel to other parts of Asia through the submarine cable system in the Busan area.”
The transaction is expected to be completed in the second quarter of 2021, subject to meeting customary closing conditions and obtaining regulatory approval.
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