Group Azrieli , Controlled by Dana Azrieli, is expanding its activities in the field of data centers to Europe. Today (Monday) the company reported the signing of a significant agreement to acquire a private company active in this field in Scandinavia.
As part of the transaction, the Azrieli Group will acquire 100% of the share capital of Green Mountain for NIS 2.825 billion. Green Mountain is a Norwegian company, established in 2009 and engaged in the field of server farms. It ended 2020 with a loss of NIS 6 million, despite an 18% growth in revenue to NIS 71 million.
The acquired company has three main activities: planning and building server farms with high information security, providing advanced server farm services to organizations and wholesale customers, and operating efficient server farms using only renewable energies.
The company owns a number of real estate properties, which are leased to third parties and used by the company for its activity in the field of server farms. Green Mountain operates three server farms in Norway and is currently signed to supply about MW24 to customers associated with it for an average period of 7.5 years.
The acquired company also has potential for future construction and development at these and other sites, amounting to approximately MW520. According to the Azrieli Group, the market in Scandinavia in general, and in Norway in particular, enjoys high growth in the data centers, exceptional ordering of electricity produced from environmentally friendly sources, as well as one of the lowest electricity costs in Europe.
Azrieli Group is the largest real estate company in Israel and its shares are traded on the stock exchange at a company value of about NIS 30 billion. According to Azrieli Group, the acquisition of Green Mountain is part of its growth strategy, as part of which it entered the server farm in recent years.
The Azrieli Group intends to use the presence of Green Mountain in the European data centers market and its experienced management, in order to establish its grip and growth in this market. According to Dana Azrieli, Chairman of the Azrieli Group: “The acquisition of Green Mountain is a key milestone in the realization of the Azrieli Group’s strategy for building international activity in the field of data centers.”
Azrieli added that “The combination of operations in North America through Compass, together with the acquisition of Green Mountain in Europe, will enable the Azrieli Group to become a significant global player in this growing and evolving arena.
“We are making a significant investment in Europe through the acquisition of a quality platform, with growth and growth potential, management with experience and knowledge and excellent assets. After several years of data center activity, I believe it will be another significant growth engine for the Azrieli Group.” develop”.
The Azrieli Group will finance the transaction from its independent sources, including through part of the NIS 3.7 billion bond issue it is currently carrying out. In addition, the company intends to act on a specific loan through a subsidiary in Norway or Green Mountain from a financial entity The transaction, amounting to up to 50% of the consideration.