Singapore’s ST Telemedia buys 49% stake in UK data center provider

Singapore's strategic investor ST Telemedia has agreed to buy 49-per cent stake in Virtus, one of the fastest-growing data center providers in the UK, for an undisclosed sum, aiming to expand its data center footprint in the UK.

ST Telemedia's wholly-owned subsidiary STT GDC Pte Ltd will form a joint venture with Virtus' existing owner Brockton Capital for the investment.

The new partnership will allow Virtus to leverage ST Telemedia's extensive data centre experience and expertise to strengthen its market position, accelerate growth and continue its mission to lead the industry, the companies said in a statement.

London-based Virtus owns, designs, builds and operates the UK's most efficient and flexible data centers with leadership in hyper efficient, ultra-high density and highly interconnected facilities.

ST Telemedia's executive director Sio Tat Hiang said, ''ST Telemedia's investment in Virtus comes at a fitting time for Europe's data-centre market, particularly in the top-tier, carrier-neutral segment, where we're seeing growth opportunities.

''This investment is consistent with our international data-centre strategy and is of strategic importance as it gives us a vital foothold in London--a key global Tier 1 data-centre market.''

The UK is the biggest hub of data centers in Europe with 224 facilities, with 69 being in London, according to Research and Markets.

ST Telemedia is a global investor in communications, media and technology with its focus on mobile communications, converged quadruple-play services, global IP / data services, data centers, satellite services and cable TV.

The company is a pioneer in data centers with the launch of advanced internet exchange services in Asia in late 1990s. In 2000, ST Telemedia launched i-STT, a wholly-owned internet infrastructure services which was later merged into US data center giant Equinix Inc. ST Telemedia was once the largest strategic shareholder in Equinix, which developed into one of the world's largest carrier-neutral and advanced data centre companies.

ST Telemedia's portfolio companies include Level 3 Communications which operates over 350 carrier-neutral data centre facilities throughout North America, Latin America and Europe and GDS Services which operates 17 high-availability carrier-neutral data centers in primary economic hubs across China.

The company plans to develop a 150,000 square feet, high quality, state-of-the-art flagship data centre facility in Singapore.

London-based Brockton Capital, an investment advisor to real estate funds, invested in Virtus in 2011. It plans to spend up to £100 million in the company's data centers over the coming five years.

Virtus CEO Neil Cresswell, CEO, said, "Virtus has experienced rapid growth in the last five years with increasing customer demand for our innovative and high quality services. The addition of ST Telemedia to our existing relationship with Brockton Capital will support our growth plans to expand our data centre footprint and services in key markets."