Insurer's investment division steps up infrastructure strategy with majority stake in data centre firm
A formal agreement has been signed by Manulife Investment Management to purchase a majority stake in Serverfarm, a data centre owner and operator, on behalf of Manulife Infrastructure Fund II* and its affiliates.
Along with backing from current shareholders, Manulife IM's sizeable investment will provide Serverfarm the money it needs to continue expanding throughout Israel, Europe, and North America. Serverfarm has acquired more property to build further data centres on, and presently manages a portfolio of eight data centres spread across North America, Europe, and Israel.
"Avner and the Serverfarm team have built a high-quality data center portfolio and growth platform that is well-positioned to capitalize on the strong secular tailwinds in the data center market," said Recep Kendircioglu, global head of infrastructure, Manulife Investment Management. "We are excited about the company's future and our ability to support Serverfarm through its next phase of growth on behalf of our clients."
After the completion of conventional closing conditions, such as the receipt of certain regulatory clearances, the transaction is anticipated to conclude in the third quarter of 2023.
Serverfarm has TD Securities (USA) LLC as its financial advisor, Citigroup Global Markets Inc. as its principal financial advisor, and Dentons US LLP and Alston & Bird LLP as its legal counsel.
"Partnering with Manulife Investment Management, an investor that shares Serverfarm's vision for growth and customer service, will allow us to effectively address the next wave of demand from our existing and new customers," said Avner Papouchado, Founder and CEO of Serverfarm.
"Our new relationship with Manulife Investment Management provides Serverfarm with additional expertise and new capital to execute on a number of attractive development opportunities and give our customers a long-term growth runway," Papouchado said.