The Swedish optical fiber company Hexatronic has signed an agreement to acquire 100% of the shares in the US Data Center System (DCS).

It is expected that DCS will generate approximately US$3 million in EBITDA in 2021, including approximately US$2.5 million in tax benefits arising from the transaction. Including performance-based consideration, the total effective enterprise value will be between US$17.2 million and US$19.9 million.

Hexatronic Group CEO Henrik Larsson Lyon (pictured) said: "Through DCS, Hexatronic has entered the US data center market, and it is expected that these data centers will continue to grow.

"The increasing data traffic and the trend of edge computing have increased the demand for larger hyperscale data centers and small and medium data centers closer to the edge."

The news was released after Hexatronic's acquisitions in recent months.

In July and August, the company acquired Australia’s Optical Solutions Group and The Fiber Optic Shop; Dutch pipe and pipe manufacturer Weterings; and Rehau Group, one of the major players in the German micropipe market.

However, this transaction marks Hexatronic's first foray into the US data center field.

The DCS acquisition will be funded by Danske Bank’s senior bank loan and will be subject to customary closing conditions. Once these are completed, the transaction may be completed as early as next month.

DCS said its current owner Kevin Ehringer (Kevin Ehringer) will continue to serve as CEO after the transaction is completed. He said: "Joining the Hexatronic Group is a big step towards DCS's realization of our vision of becoming a global leader in large-scale enterprise data center storage and network connectivity."

In the project news, in July Hexatronic confirmed that it will provide high-fiber count cables for Zeus submarine systems, providing "high-capacity 192 fibers, 100% double-armored cables, with higher compression resistance and ULL fiber technology to increase flexibility." The company also provided cables for Crosslake Fibre's new system across the English Channel.

Last month, Hexatronic's US branch and Ting Internet signed a US$50 million cooperation agreement to provide micropipes, blown optical fibers, microcables, blown cables for Ting's fiber-to-the-home (FTTH) construction throughout the United States Tools and accessories. In announcing the news, Hexatronic stated that the United States is "one of our three strategic growth markets."

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