BackWeb Werks enters into Joint Venture Agreement with Iron Mountain for $150mn equity investment
After the investment period, Iron Mountain will be the majority investor in the venture
PremiumWeb Werks, an independent data center provider in India, announced that it has entered into a strategic relationship with Iron Mountain, who will invest US$150mn primary equity into Web Werks over the next two years. After the investment period, Iron Mountain will be the majority investor in the venture. Once completed, this transaction will allow Web Werks to accelerate its expansion across different Indian cities. The transaction is expected to close within the next 90 days, subject to customary closing conditions.
Web Werks operates three Tier 3, carrier-neutral data centers in Mumbai, Pune and Delhi NCR with a combined footprint capability of 225,000 square feet. This investment enables Web Werks to expand its operations in its three existing markets immediately and expand into Bangalore, Hyderabad and Chennai. Web Werks houses six worldwide Points of Presence (POPs), provides 4 megawatts (MW) of existing capacity, supports 6,000+ servers and supports 850 clients. While Iron Mountain Data Center customers get access to three rapidly growing Indian markets, including the 2nd most active peering location in Mumbai
“Joining forces with the Iron Mountain Data Center team will further solidify Web Werk’s leadership position in the pan-India region and among the broader set of global customers," stated Nikhil Rathi, CEO, Web Werks. “Web Werks and Iron Mountain Data Centers are fully committed and aligned to grow and scale to meet the digital transformation and interconnection needs of our customers. The Joint Venture will position Web Werks among the select few data center operators with assets across all major cities and have both HyperScale and dense Interconnection expertise. We look forward to collaboration and our continued success."
“This investment reflects Iron Mountain’s commitment to invest in high growth, good return global markets to continue to meet our customer’s requirements. The India data center market is projected to grow exponentially in the coming years and Iron Mountain is excited to be an early mover into a market where the demand is high and the supply is lo,." stated Mark Kidd, Executive Vice President & General Manager, Iron Mountain Data Centers.
“Web Werks has a highly respected and seasoned leadership team; we are delighted to not only support their continued growth and success but also to provide our existing Iron Mountain data center customers access to this growing and thriving market."
“India provides an important next step in expanding our Asia Pacific footprint," stated Michael Goh, General Manager Asia Pacifc at Iron Mountain Data Centers. “We have seen very strong regional demand from our global customers following the grand opening of our Singapore data center, SIN-1, in 2019."
Deutsche Bank acted as the exclusive financial advisor to Web Werks on the fundraise, Khaitan & Co and Ernst & Young acted as the exclusive advisors to Web Werks. Cyril Amarchand Mangaldas and PwC India acted as advisors to Iron Mountain on this transaction, Jones Lang LaSalle acted as an introducing partner to both parties.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
