Altice France S.A has entered into an exclusivity agreement to partner with Morgan Stanley Infrastructure Partners (MSIP) to establish the first nationwide independent distributed colocation provider in France through the sale of a 70%-majority stake in UltraEdge, a datacenter company to be formed and comprising 257 data centres plus office space currently operated by SFR across France.
The envisaged transaction values UltraEdge at an enterprise value of €764 million representing an attractive multiple of c.29x 2023 pro forma EBITDA of €26 million. In addition, SFR will enter into a build-to-suit agreement with UltraEdge by which SFR is expected to generate approximately €175 million of additional proceeds to SFR within the next 7 years.
UltraEdge will be the first nationwide independent distributed datacenter operator in France with more than 45MW of installed capacity and c.33,000sqm of owned office space distributed across the country including in key metropolitan areas. UltraEdge enables essential data storage and connectivity services from these sites which are all connected on SFR’s nationwide fibre infrastructure. The passive infrastructure and equipment of the datacenters will be transferred to UltraEdge with servers and active equipment retained at SFR.
The distributed nationwide footprint of datacenters uniquely positions UltraEdge as the first scaled mover in the edge datacenter market in France benefiting from the increasing demand for ultra low-latency services where data storage and compute is needed closer to the end user. Moreover, UltraEdge will benefit from the continued development of very high-speed telecom networks (5G and Fibre networks) driving requirements for new sites and capacity.
Tthe transaction will strengthen Altice France on its objectives to provide best in class telecommunication services to its clients as the datacenter infrastructure continues to be upgraded, expanded and densified.
“We believe the opportunity to create an independent and distributed edge colocation provider, benefiting from access to SFR’s nationwide fibre infrastructure in France, makes UltraEdge a very attractive investment for MSIP,” said Yacine Saidji, Managing Director and Co-Head of Europe for MSIP.