The US investment firm and ST Telemedia are nearing a potential agreement, with KKR already holding a 14.1% stake in STT GDC. If the deal goes through at a valuation of over $5 billion, it would stand out as one of KKR’s largest transactions this year. However, despite the advanced stage of discussions, there is still a possibility of delays or the deal falling through, according to sources familiar with the matter who wished to remain anonymous. Both KKR and STT GDC have refrained from commenting on the ongoing negotiations.
Headquartered in Singapore, STT GDC boasts a robust presence across Asia with more than 100 data centers spread across key markets like India, South Korea, Japan, and Malaysia. Additionally, the company extends its services beyond the Asian region to countries such as the UK, Italy, and Germany, offering a wide range of services including colocation, connectivity, and support services to its clientele.
Last year, a consortium comprising KKR and Singapore Telecommunications made a significant investment of $1.4 billion to acquire a minority stake in STT GDC following a competitive bidding process.
KKR has been proactive this year in seizing investment opportunities amidst market uncertainties, reminiscent of its strategy during the pandemic and trade war challenges under the Trump administration. Notably, the firm recently made notable acquisitions, including securing OSTTRA and Karo Healthcare for substantial amounts, as well as agreeing to purchase Spectris for a substantial sum.
