KDDI has Signed a Definitive Agreement of Purchase and Sale to Acquire Assets from Allied Properties REIT to Expand the Company's Data Center Business in Canada

―Establishment of a new company "KDDI Canada, Inc." to further strengthen its DX domain―

• KDDI Corporation

June 21,2023

On June 21, 2023, KDDI announced that it had signed a definitive Agreement of Purchase and Sale with Allied Properties REIT (Headquarters: Toronto, Canada, CEO: CECILIA WILIAMS) to acquire its data center business for CAD 1.35 billion. KDDI plans to establish a new subsidiary "KDDI Canada, Inc." in Canada on June 26, 2023.

KDDI has been promoting "Sustainability Management" by implementing its "Satellite Growth Strategy" to increase corporate value and a cycle of sustainable growth in society. As one of the focused areas of the growth strategy, KDDI has been expanding its DX domain. With the data center business being one of the core parts of DX, KDDI aims to expand interconnection data centers (hereinafter referred to as "interconnection DC") as places where customers such as content providers, cloud service providers, and telecommunication carriers connect with each other and create new value.
In addition to "Telehouse London," which has the world's largest number of connections [1], and "Telehouse Paris, which has the largest number in France [1], KDDI also established a new data center in Bangkok, Thailand in May 2023, expanding not only in Europe, but also in Southeast Asia. Through this agreement, the company will acquire Canada's top [1] interconnection DC and strengthen its data center business in North America to promote its business on a global scale.

■Background and Aims

The global data business is accelerating and the need for data centers is increasing. With the spread of IoT and 5G, traffic by users who use apps and view content on mobile devices is increasing. As a result, interconnection DCs, which enable content providers, Internet operators, hyperscalers, etc. to interconnect within the data centers and create value, are becoming increasingly important for realizing a digital society.

As a platform for society, KDDI will accelerate its business centered on high-quality interconnection DCs, which are the easiest to interconnect, and contribute to the expansion of global business for corporate customers and the prosperity of the digital world.

■Overview of KDDI Canada, Inc.

(1) Name	KDDI Canada, Inc.
(2) Location	Toronto, Canada
(3) Business Description	Data Center Business
(4) Capital	CAD 1,100 million
(5) Date of Establishment	June 26, 2023 (Scheduled Date)
(6) Major Shareholders and their Shareholding Ratio	KDDI 100%

• [1]

  The number of customer interconnections in a data center. As of June 21, 2023.
  Source: PeeringDB

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