Global private equity behemoth KKR is investing in Malaysian subsea cable provider OMS Group in a $400-million tailored transaction, according to a statement on Monday.
The deal is expected to be completed by Q1 2024, subject to customary closing conditions, the statement said, without disclosing additional details.
According to the statement, KKR’s investment will help OMS Group accelerate growth by expanding its fleet size and capabilities and investing in cable landing stations and subsea cable routes to serve fast-growing cross-border data transmission trends and the demand for comprehensive subsea cable services.
“Our tailored solution for OMS Group creates strong adjacencies with KKR’s recent digital infrastructure investments and builds on long-term secular tailwinds in the region, including increased data consumption, enterprise cloud needs, a focus on digitalisation by governments, and a booming digital economy,” said Projesh Banerjea, Director, Infrastructure, at KKR.
Ronnie Lim, Group CEO, OMS Group, said, “Together with KKR’s strong track record in supporting and investing in data infrastructure assets and its platform-building expertise, OMS Group is in a stronger position to support its clients to build and maintain greater global connectivity.”
KKR is making this investment primarily from its Asia infrastructure strategy. Some of its past investments in Southeast Asian digital infrastructure include the regional data centre platform of Singtel, a leading communications technology group headquartered in Singapore; and Pinnacle Towers, a digital infrastructure platform in Asia with a strong focus on the Philippines.
Globally, KKR’s investments in digital infrastructure include CyrusOne, a global leader in the development and operation of sustainable, scalable, high-availability and flexible data centre solutions; and Global Technical Realty, a build-to-suit and roll-up acquisition data centre platform in Europe.
