16 February 20242 minute read

DLA Piper advises data center provider Digital Edge on its increased majority investment in Indonet

Global law firm DLA Piper has assisted market-leading data center provider Digital Edge (Singapore) Holdings Pte. Ltd. (Digital Edge) on its acquisition of the remaining 33% share held by the original founders of the Indonesian digital infrastructure company PT Indointernet Tbk (Indonet), thereby increasing Digital Edge’s majority investment in the company.

The acquisition was completed through one of Digital Edge’s wholly-owned subsidiaries, and follows its initial acquisition of a controlling stake in Indonet in 2021. This shareholding upsize was conducted through an off-exchange sale of shares by Otto Toto Sugiri and the other four founders of Indonet. It was funded through a combination of capital from Digital Edge alongside an external debt facility. The transaction will enable Digital Edge to bolster its service offerings to its colocation customers, leveraging Indonet’s full suite of dark fiber, cloud and network service assets.

Digital Edge builds and operates state of the art, energy efficient data centers across Asia Pacific. Its data centers are rich with connectivity options, catering to the entire digital ecosystem, from targeted enterprise solutions to major hyperscale deployments. Digital Edge provides colocation data center and interconnection services across Asia, and has a presence in China, India, Indonesia, Japan, Korea, and the Philippines.

Established in 1994, Indonet is a leading digital infrastructure company that helps businesses to achieve digital transformation.

The transaction was led by Joe Bauerschmidt, Corporate partner and Co-Country Managing Partner in Singapore, with support from Singapore-based corporate associate Miftahul Ari Khairi. Partner Matthias Schemuth, and senior associate Naomi Hong led on financing elements, assisted by associate Schiller Cowley and legal assistant Emily Wan, all from the Finance, Projects and Restructuring practice. Matthias is based in Singapore, while Naomi, Schiller and Emily are all based in Hong Kong.

Commenting on the transaction, Joe said: “It has been a pleasure working with such a strong deal team at Digital Edge once again, assisting them in closing another complex deal in a very tight timeline. This deal cements DLA Piper Singapore’s expertise in the high-value digital infrastructure space within the region.”

DLA Piper has represented Digital Edge in various complex matters in seven Asian jurisdictions over the last five years.