Flow2Edge has entered a $3.5 million consulting, licencing and distribution agreement with ASX-listed prefab data centre provider DXN to export its data centre modules to APAC markets excluding Australia.
The agreement follows months of failed acquisition negotiations between the Singapore-based FLOW Digital Infrastructure subsidiary and DXN.
A DXN ASX release stated that Flow2Edge would pay DXN $2 million to exclusively market, distribute and license DXN modules outside Australia for ten years and $1.5 million over three years for consulting fees to support Flow2Edge’s operations.
DXN chief executive officer Shalini Lagrutta said “the DXN team are immensely proud to partner with FLOW, a high growth and innovative digital infrastructure platform, to assist in its ambitions to grow its presence in the Edge data centre market.”
“It’s a testament to the hard work demonstrated by the DXN team and validation of our products, solutions and customer-centricity,” Lagrutta added.
FLOW chief executive officer Amandine Wang said “this strategic partnership will enable us to leverage DXN’s superior Edge data centre design and construction expertise, allow us to efficiently manage our supply chain, and deliver EDGE-as-a-Service in the APAC region with the desired speed to market.”
“This is a milestone for FLOW as we continue to invest in digital infrastructure to meet the rapidly growing demand across our markets.”
In August, Flow2Edge offered to acquire DXN’s entire business assets, including its subsidiaries TAS01 Pty Ltd, Secure Data Centre Pty Ltd and the SDC Unit Trust, for $26 million.
DXN said the proceeds of the acquisition would be used to repay debts and to be paid out to shareholders, estimated to be in the range of $0.011 to $0.013 per share.
According to a DXN release, the revised acquisition deal was rejected because FLOW Digital Infrastructure, which is owned by Singapore-based PAG Real Estate, was unable to satisfy the conditions in the proposed sale agreement.
The announcement of the consulting, licencing and distribution agreement coincides with DXN’s annual general meeting today. The results of the AGM are yet to be released.
FLOW is a managed platform founded to develop a leading digital infrastructure platform across the Asia Pacific region. It invests in and operates physical assets that constitute the digital infrastructure ecosystem, including cloud, hyperscale, edge and enterprise data centres as well as network and fibre assets.
In August, FLOW said the Asia Pacific region was “currently underinvested” in digital infrastructure and that there was an opportunity to address gaps in the digital ecosystem. It added the region has “substantial runway for growth” underpinned by emerging market demand, core data centres, fibre networks and edge computing.
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