STL buys IDS Group for European data center design and deployment
STL (Sterlite Technologies Ltd.; NSE: STRTECH) has entered the hyperscale data center construction space via the acquisition of IDS Group. UK-based IDS, which comprises Impact Data Solutions Ltd. (IDS) and its affiliate, offers just such services. The all-cash deal, at an enterprise value of approximately £12 million ($14.7 million), was financed by a combination of internal accruals and foreign currency debt instruments.
STL has obtained ownership of 80% of IDS Group initially. The remaining 20% will be acquired based on an earn-out model “over the next few years,” the company says.
Privately held IDS Group offers design and deployment services to cloud and colocation providers as well as containment products for internal data center infrastructure requirements. STL describes IDS as “a key partner to two of the top four global cloud companies,” one of whom has worked with IDS for the last 10 years. IDS has a pan European presence and a dedicated partner ecosystem, STL adds.
“It is our endeavor to be more and more relevant to our customers’ data network creation needs across the globe. The massive growth in data transmission and high bandwidth applications are driving a large need for edge compute and localized data center, which makes this an extremely attractive space for investment,” said Dr. Anand Agarwal, Group CEO at STL. “Ben [Parker, IDS CEO] and team have established IDS to be a very strong contender in this space, making this acquisition extremely well aligned to our stated strategy of strengthening our solutions to our cloud provider customer segment, and taking our network services business global.”
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About the Author
Stephen Hardy
Editorial Director and Associate Publisher, Lightwave
Stephen Hardy is editorial director and associate publisher of Lightwave and Broadband Technology Report, part of the Lighting & Technology Group at Endeavor Business Media. Stephen is responsible for establishing and executing editorial strategy across the both brands’ websites, email newsletters, events, and other information products. He has covered the fiber-optics space for more than 20 years, and communications and technology for more than 35 years. During his tenure, Lightwave has received awards from Folio: and the American Society of Business Press Editors (ASBPE) for editorial excellence. Prior to joining Lightwave in 1997, Stephen worked for Telecommunications magazine and the Journal of Electronic Defense.
Stephen has moderated panels at numerous events, including the Optica Executive Forum, ECOC, and SCTE Cable-Tec Expo. He also is program director for the Lightwave Innovation Reviews and the Diamond Technology Reviews.
He has written numerous articles in all aspects of optical communications and fiber-optic networks, including fiber to the home (FTTH), PON, optical components, DWDM, fiber cables, packet optical transport, optical transceivers, lasers, fiber optic testing, and more.
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