EdgeConneX: EdgeConneX agrees to acquire Israel's Global Data Center

Aug 17, 2021 | Posted by Abdul-Rahman Oladimeji

EdgeConneX will be acquiring Israeli-based Global Data Center (GDC). Global Data Center was founded in 2013, and it operates two data centers in Petah Tikva and Herzliya, near Tel Aviv. The Petah Tikva and Herzliya facilities have 64,600 square feet and 48,400 square feet, respectively. GDC recently built the Petah Tikva facility this year for $30 million, and it also has 15MW of power. None of the companies disclosed the transaction terms, but local media is reporting a fee of around $200 million.

CEO of EdgeConnex, Randy Brouckman, said the Company is excited to announce its expansion to the Middle Eastern region by acquiring GDC. He also added that the Company would continue focusing on its customers by providing them with the needed capacity. Brouckman also noted that GDC’s existing talented team, track record, and infrastructure would help the Company meet the customer’s needs effectively.

EdgeConneX Press Release on August 16, 2021

HERNDON, Va., Aug. 16, 2021 /PRNewswire/ -- EdgeConneX®, the pioneer in global Hyperlocal to Hyperscale Data Center Solutions, today announces that it has agreed to acquire Global Data Center (GDC), an Israel-based data center operator headquartered in Herzliya, the hub of Israel's hi-tech district. Once completed, the acquisition will bring two new facilities into the EdgeConneX global data center platform, including GDC's state-of-the-art, and highly secure underground facilities in Herzliya and Petah Tikva, near Tel Aviv.

"I am pleased to announce the expansion of the EdgeConneX global footprint to the Middle Eastern region with the acquisition of GDC," said Randy Brouckman, CEO of EdgeConneX. As always, the Company's focus is on its customers and providing them with the capacity they want, where they want it, and when they want it.  In the case of Israel, GDC's talented leadership team, strong operational track record and existing infrastructure helps us accelerate meeting these requirements by providing a ready-made solution with a premium platform that is already well established in the market."

Global Data Center was founded in 2013 by Moshe Lasman in cooperation and with the financial backing of the Viola Group, a leading private equity investment firm. The Company is operating two highly secure, sub-terranean data centers in the area of Tel Aviv, one in Herzliya Pituach, and the second in Petah Tikva. Both sites are built in accordance with the Tier 3 Uptime global standard that serves as the current standard for advanced data centers.

Backed by EQT Infrastructure, one of the world's largest infrastructure funds, EdgeConneX brings significant financial and professional resources and digital infrastructure industry experience to GDC. This backing and support will accelerate GDC's development and ability to invest in new capacity in Israel – ushering in an exciting growth phase for the Company.

"Global Data Center is joining EdgeConnex following seven years of great momentum in our business," commented Moshe Lasman, Global Data Center Founder and CEO. "EdgeConneX brings over a decade of experience building out a global data center platform that includes approximately 50 data centers in over 40 markets around the world and spans everything from hyperlocal edge facilities to hyperscale data center campuses. Together, we will be able to best serve the local data center infrastructure needs in Israel and global requirements anywhere in the world."

"For our Israeli customers, nothing changes practically in regard to Global Data Center, organizationally, operationally, or strategically," Lasman added. "I will continue to lead the business in Israel and the rest of the GDC team will remain in place.  The GDC teams supporting each customer will continue to perform in the same manner as before.  If anything, we will look to further grow and augment the existing teams with additional talent and continue to operate our data centers as before.  We will provide each customer with the space, power, and connectivity, where they need it to best serve their needs and that of their customers."  

"Israel attracts multinational players, which turn the country into a global hub in cloud computing, and the deal we're announcing today shows the trust in the potential of the local market," said Harel Beit-On, co-founder and general partner at Viola. "As early investors with significant share in Global Data Center, we have been accompanying the development in the data center landscape for the past seven years and believe that the entrance of EdgeConneX to the Israeli market will further drive its growth. We congratulate Moshe Lasman and the management of Global Data Center for the deal."