Infratil, a New Zealand-based infrastructure investment company, has acquired a majority stake in Console Connect, a global Network-as-a-Service (NaaS) platform. Infratel on Monday announced that it has entered into a conditional agreement with HKT Trust and HKT to establish a partnership to accelerate the growth of the Console Connect interconnection platform.
Automated Connectivity Solutions Simplified
Console Connect, ranking among the top three interconnection platforms worldwide, offers automated connectivity solutions. It simplifies secure connections to data centres, clouds, partners, and various applications through its fully automated switching and routing capabilities.
Console Connect was established in 2011 and currently manages a Tier 1 global IP network that covers 738,000km of fibre. The network includes 135 POPs and has the capacity to operate 67 cable systems. According to Infratel, Console Connect owns a top-ranked worldwide IP network serving 17 percent of internet traffic in over 150 countries, providing them with a significant edge.
Infratil's Majority Stake in Console Connect
As part of the agreement, Infratil will acquire an initial 80 percent stake in Console Connect from HKT for USD 160 million. Additionally, both Infratil and HKT will jointly invest up to USD 295 million over a two-year period following the completion of the acquisition.
Joint Investments to Drive Expansion
As per the statement, this investment aims to accelerate the growth of Console Connect through various initiatives such as joint sales and marketing efforts, investment in new subsea cable systems and network development, and continued research and development of the platform's technology.
Infratil says it will own 60-80 percent of Console Connect in the next growth phase, with HKT retaining the rest. Ownership distribution will depend on each party's contributions in the first two years. Infratil, as the main investor, will have governance rights and partner with HKT to grow the business.
Subject to Regulatory Approvals
The completion of the acquisition is subject to regulatory approvals from telecommunications and foreign investment authorities, as well as merger approvals in multiple countries, including Australia, France, Germany, Greece, Hong Kong, Italy, Japan, Mozambique, the Netherlands, Singapore, South Africa, and the USA.
Assuming the approvals are granted, the transaction is expected to be completed in the third quarter of 2024. This strategic investment in Console Connect marks a significant step for Infratil in expanding its digital infrastructure presence and capitalizing on the global demand for advanced connectivity solutions.