Spark New Zealand (SPK.AX), a telecommunications and digital services company, Friday announced that it has sold 75 percent stake in its data center business to Pacific Equity Partners or PEP, an Australia-based Private Markets Fund Manager.
The deal was valued up to $705 million representing a FY25 pro-forma EBITDA multiple of 30.8x of which the company has received initial cash proceeds of $453 million with additional deferred cash proceeds of up to $98 million contingent on the achievement of certain performance-based objectives by the end of December 2027.
Spark plans to use the net proceeds to reduce its group debt.
Spark CEO, Jolie Hodson, said, "Spark has built a strong data center business in New Zealand, operating over 23MW of capacity at 11 facilities across the country. We're excited to complete this transaction with PEP, which provides a funding pathway for the planned 130MW+ capacity development pipeline and significant growth potential beyond."
Further, Spark's data center assets and operations have transferred to a new standalone company called TenPeaks Data Centers, with Spark holding two seats on the board of the new company.
Spark CEO, Jolie Hodson, and CFO, Stewart Taylor, have been appointed as Non-Executive Directors alongside Andrew Charlier, Evan Hattersley, and Michael Bendeli from PEP's Secure Assets Fund., the company added in a statement.
On Friday, SPK.AX shares closed at $1.96, up 1.29% on the Australian Stock Exchange.
For comments and feedback contact: editorial@rttnews.com
Business News
May 22, 2026 14:46 ET Minutes of the latest Fed policy session was the highlight of the week along with survey data on the U.S. housing market. In Europe, survey data signaled the trends in the euro area private sector. Further, consumer price inflation data from the U.K. was in focus. In Asia, various economic indicators from China drew attention to the health of the economy.