KPN has reached agreement to sell its data center subsidiary NLDC to a private equity fund managed by DWS – a global infrastructure investment manager. Financial terms of the transaction were not disclosed.
NLDC is one of the largest colocation providers in the Netherlands. It operates a portfolio of six data centers, of which three in the Amsterdam area and three regional “Internet hotspots” in Eindhoven, Rotterdam and Groningen. NLDC will continue to deliver data center services to KPN as a preferred supplier and services to customers would continue uninterrupted.
After closing of the transaction, KPN would continue to deliver its core ICT services (such as security, workspace, cloud telephony, hybrid-cloud solutions) out of its remaining and NLDC data centers in the Netherlands as well as use public cloud capabilities such as AWS and Microsoft Azure.
The transaction is in line with KPN’s strategy to accelerate simplification and focus on core ‘ICT services in Business.’ The proceeds of the transaction will be retained to increase operational and financial flexibility. The transaction is subject to regular closing conditions, including regulatory approvals.