Digital 9 Infrastructure, an investment trust that seeks out digital infrastructure assets that deliver reliable internet, has completed the acquisition of Aqua Comms for £160m, its first acquisition.
Aqua Comms is a platform that owns and operates some 14,300km of trans-Atlantic sub-sea fibre systems. Digital 9 said Aqua Comms’ infrastructure represented the very “backbone” of the internet.
The investment trust’s investment manager, Triple Point IM, expects that the first-year dividend will be over 100 per cent cash covered, with the first dividend of 1.5p to be paid for the quarter ending 30 June 2021.
Thor Johnsen, head of digital infrastructure at Triple Point Investment Management, said: “We believe that the investment has been made at an attractive valuation compared to recent similar transactions in the market. In addition, there are further major fibre systems and developments not reflected in the historical financials or historical valuation metrics.”
Triple Point is making progress on other investment opportunities, with three further potential investments in the pipeline, comprising two data centres and a terrestrial fibre platform with an aggregate initial investment value of over £200m.
Two of the potential investment have already been considered by the Triple Point investment committee and one is under active negotiation.