The Tel Aviv Stock Exchange-listed Azrieli Group Ltd will buy Norwegian data centre company Green Mountain for NIS2.8 billion ($850 million) from its majority owner Smedvig.
The Danna Azrieli-led company said it has signed an agreement to acquire the 12-year-old Norwegian company in a bid to augment its data centre capacity and grow the business, targeting the European market.
Azrieli, the largest real estate group in the tiny West Asian country, said it will finance the acquisition partly via debt financing. It will also secure a loan for up to half the deal price via a subsidiary in Norway or Green Mountain itself.
Green Mountain designs and constructs secure server farms, using renewable energy to power them. The company also provides server farm services to companies and wholesale customers.
Founded in 2009, Green Mountain operates three such farms. It was in the red in 2020, as it registered a loss even is revenue over the previous year registered an 18% uptick.
“The data centers sector represents the new income-producing real estate world and is experiencing high growth rates,” said Danna Azreili, chairman of Azrieli Group.
She said the deal is part of Azrieli Group’s strategy to build international operations in the data centre sector. “The combination of the operations in North America through Compass [Datacenters] with the acquisition of Green Mountain in Europe will allow Azrieli Group to become a significant global player in this growing and developing arena,” she added.
Separately, Green Mountain said the investment will help the company to accelerate expansion in the Nordic market and in the wider European market.