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Global Cloud Xchange
UKCommunications
Overview
Global Cloud Xchange (“GCX”) is a leading global data communications service provider and owner of one of the world’s largest private subsea fibre optic networks. The business provides high-bandwidth connectivity to a range of customers including over-the-top content providers, telecom carriers, new media providers and enterprises.
GCX’s 66,000km of cables span from North America to Asia. It is particularly strong on the Europe-Asia and Intra-Asia routes where it is well positioned to capitalise on growth opportunities and serve the exponentially growing demand for data traffic.
Recent developments
Since our acquisition, the business is performing in line with expectations; lease revenues have grown strongly as the business prioritises recurring revenues over one-off cash IRU sales.
GCX is currently examining several opportunities to invest in new cables in the Middle East which would provide synergies with its existing network.
Investment rationale
In November 2021, 3i Infrastructure plc agreed to invest c.$512m to acquire a 100% stake in GCX. Additional acquisition debt was raised in March 2022, reducing the Company's equity commitment to $377m. The investment completed in September 2022.
- GCX owns one of the most comprehensive subsea cable networks globally, serving customers in over 180+ countries
- Benefits from the rapidly expanding data market with data usage forecast to grow exponentially
- Operates in a market with high barriers to entry whilst providing an essential service
- Supported by a highly experienced management team who have a strong track record in the sector
Sustainability
As a leading global data communications service provider and owner of one of the world’s largest private subsea fibre optic networks, GCX enables increased connectivity to underserved regions in Asia, Africa and Middle East. The business is continuously developing solutions to maximize the efficiency, utilisation and capacity of existing assets and systems, reducing environmental impacts. GCX is actively developing an ESG strategy to enhance its environmental, social and corporate governance. In addition, the business is in the process of certifying its carbon footprint and working on emission reduction initiatives.
Key facts>180 countries Customers in over 180 countries>46 countries Access to landing stations in over 46 countries66,000km Cables spanning 66,000km from North America to Asia
