Target Information

Founded in 2007, firstcolo datacenters GmbH, a subsidiary of diva-e, operates two state-of-the-art Tier III+ data centers in Frankfurt, Germany, which have been fully powered by renewable energy since their inception in 2015. Under the leadership of EMERAM and diva-e, who became majority stakeholders in 2015, the management team successfully enhanced firstcolo's revenues and profitability in the core colocation business, while also launching new growth areas like private cloud solutions.

Firstcolo expanded its operations through the acquisition of Accelerated IT in 2017, further strengthening its position in the competitive data center market. The company has committed to sustainability and innovation, aligning with increasing market demands for energy-efficient infrastructure.

Industry Overview in Germany

The data center industry in Germany is experiencing significant growth, driven by the rising demand for cloud services, data storage, and processing. Germany’s robust regulations concerning data protection and its strategic geographic location in Europe make it a prime target for global tech companies seeking reliable data infrastructure.

Additionally, the increasing need for digitalization across various sectors, including finance, healthcare, and telecommunications, is prompting businesses to invest heavily in data centers. The acceleration of digital transformation initiatives during recent years has further amplified this trend.

Germany's focus on sustainable practices has also shaped the industry, with many institutions prioritizing the use of renewable energy to power data centers. This is not only beneficial for the environment but also appeals to consumers and businesses that value corporate responsibility.

Furthermore, with ongoing advancements in technologies such as artificial intelligence and machine learning, the demand for efficient, high-capacity data centers is expected to grow. Investing in such infrastructure is not just a necessity but also a strategic move for companies aiming to maintain a competitive edge in an increasingly digital economy.

Rationale Behind the Deal

The sale of firstcolo to Cube Infrastructure Managers is aligned with current market trends that favor investments in sustainable infrastructure. Cube's strategy focuses on benefiting from the ongoing megatrend of increasing demand for environmentally friendly and efficient infrastructure solutions. The partnership with firstcolo's management and founders is anticipated to leverage their expertise and address new growth opportunities.

This transaction allows EMERAM and diva-e to realize value from their investment while positioning firstcolo for further growth under new ownership. The emphasis on sustainability and innovation in Cube's investment strategy suggests a promising future for firstcolo, aligning with the broader trends within the industry.

Investor Information

Cube Infrastructure Managers is an independent mid-market infrastructure investor with a commitment to sustainable investments. The firm specializes in projects that enhance infrastructure assets while focusing on delivering long-term value to its stakeholders. With a portfolio that emphasizes environmental responsibility, Cube is well-equipped to assist firstcolo in capitalizing on emerging market opportunities.

Cube’s investment approach seeks to partner with high-quality management teams and innovators in the sector. By collaborating with firstcolo’s current team, Cube aims to write a new chapter of growth for the company, leveraging its experience and resources to enhance operational efficiencies and expand service offerings.

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This transaction could prove to be a highly strategic investment for Cube Infrastructure Managers. By acquiring firstcolo, Cube taps into the rapidly expanding data center market in Germany, positioning itself favorably in a sector that is increasingly focused on sustainability and efficiency.

Furthermore, firstcolo's existing reputation for reliability and innovation strengthens Cube's portfolio. The involvement of experienced management and founders in the transition adds another layer of security, likely facilitating continued growth and adaptation to market demands.

Considering the projected demand for data centers driven by digital transformation and sustainability, Cube’s acquisition appears to align well with long-term market trends. This strategic move may offer not only significant returns but also contribute positively to advancing sustainable practices within the industry.

In summary, Cube has taken a calculated step that not only speaks to its investment philosophy but also positions firstcolo for enhanced growth and market leadership in the future. The focus on collaboration and leveraging existing strengths will likely pay dividends as the data center landscape evolves.

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