MSIM to acquire 70% stake in UltraEdge

UltraEdge is a newly established data centre company.

  • The transaction values UltraEdge at €764m
  • The acquisition is made via MSIM’s private infrastructure investment platform MSIP
  • MSIM provides investment management services

Morgan Stanley Investment Management (MSIM) will acquire a 70 percent majority stake in UltraEdge, a newly established data centre company.

The transaction, which values UltraEdge at €764 million, is part of an exclusive partnership agreement between MSIM and Altice France to establish the first nationwide independent distributed data centre operator in France, according to a release.

The acquisition will be made via MSIM’s private infrastructure investment platform Morgan Stanley Infrastructure Partners (MSIP).

UltraEdge is a part of SFR, a fully-owned subsidiary of Altice France. It will hold a portfolio of 257 data centres interconnected via SFR’s countrywide fibre network which will be carved out through a demerger of SFR’s data centre operations, the release said.

“We believe the opportunity to create an independent and distributed edge colocation provider, benefiting from access to SFR’s nationwide fibre infrastructure in France, makes UltraEdge a very attractive investment for MSIP,” said Yacine Saidji, MD and co-head of Europe for MSIP.

The passive infrastructure and equipment of the data centres will be transferred to UltraEdge with servers and active equipment retained at SFR, the release said.

MSIP has around $16 billion in assets.

MSIM has $1.4 trillion in assets under management as of 30 September. It is a division under Morgan Stanley, a global financial services firm based in New York.