A $3 Billion Data Center Firm Owned By Elliott Could Be Acquired By Morrison

It has been reported that HRL Morrison & Co. is considering the acquisition of Ark Data Centres Ltd., in a deal that could be worth about £2.5 billion ($3 billion) to the UK company, according to people with knowledge of the matter.

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A New Zealand-based infrastructure investment is one of the final bidders seeking to acquire Ark, according to a person familiar with the matter, who asked not to be identified because the information is private. Several other suitors are interested in the business, controlled by Elliott Investment Management, and they are also competing for the business, the people said. 

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Even though talks are in the advanced stages of the process, the people said that no final agreements have yet been reached and another winner could still emerge in the end. The Morrison and Elliott PR teams declined to comment on the matter, while a spokesperson for Ark could not be reached for comment at the time of publication. 

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There has been a recent flurry of deals involving data centers as investors seek to take advantage of the booming demand for cloud services, which has led to a flurry of data center transactions. Trade Algo reported this week that DigitalBridge Group Inc. is considering the sale of a minority stake in Vantage Data Centers, according to a recent report by Trade Algo. Additionally, billionaire Patrick Drahi has reportedly expressed interest in acquiring a portfolio of data centers in France that he owns. 

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Ark, a London-based data center operator, is among the most significant in the UK and offers a range of cloud and connectivity services to a wide range of customers. Founded in 2005, the company is a global leader in the field. 

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The Morrison Group is a leading asset manager in the alternative assets space with a focus on infrastructure investments. This group oversees more than $18 billion and has invested in everything from data centers to airports across Asia Pacific, Europe, and the United States, according to its website. It was an early investor in data centers.

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A year ago, Will Smales, Morrison's chief investment officer, was quoted by Bloomberg News as saying that the fund manager was focusing on cloud-based technology and software services as areas of focus going forward.

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