Avner Papouchado CEO Serverfarm (C) – Facebook pic
Serverfarm, an Israeli data center owner and operator, is being acquired by the Canadian firm Manulife Investment Management. The firms have not yet officially revealed the terms of the deal, but Israeli publication Globes reported that Manulife is paying as much as $700 million for a controlling share of Serverfarm, which would give the firm a $1.5 billion valuation.
The companies did say, however, that the acquisition of Serverfarm is expected to close in the third quarter of 2023 after the satisfaction of customary closing conditions including the receipt of certain regulatory approvals.
Israel Startup Nation may still be reeling from the global financial crisis, with a number of its firms contracting or even shutting down all together, such as L1ght, an Israeli startup that develops technology to produce green quantum hydrogen in order to help fight climate change that just recently announced that it was shutting down. But Statup Nation is still finding buyers for some of its firms.
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For example, just last week three Startup Nation companies were sold to foreign firms including NeoGames, an Israeli founded technology-driven provider of end-to-end iLottery and iGaming solutions. Israeli cybersecurity firm Polar Security was sold to IBM and Go Global Travel, an Israeli firm that offers services for the travel industry was acquired by South Korea’s largest travel-booking company Yanolja Co.
Headquartered in Toronto, Manulife Investment Management describes itself as a global brand for the global wealth and asset management segment of Manulife Financial Corporation. The firm says it develops “innovative global frameworks for sustainable investing, collaboratively engage with companies in our securities portfolios, and maintain a high standard of stewardship where we own and operate assets, and we believe in supporting financial well-being through our workplace retirement plans.”
Founded in 1999 by CEO Avner Papouchado, Serverfarm calls itself a unique data center developer and operator – and the global leader in Data Center Management as a Service (DMaaS). For over 24 years, we’ve maximized operational efficiencies and managed critical IT infrastructure and environments for the world’s top enterprises.
Serverfarm currently operates a portfolio of eight data centers across North America, Europe, and Israel that aggregate more than 1.5 million gross square feet and 125MW of IT capacity, and it has secured additional land for future data center developments.
“Avner and the Serverfarm team have built a high-quality data center portfolio and growth platform that is well-positioned to capitalize on the strong secular tailwinds in the data center market,” said Recep Kendircioglu, global head of infrastructure, Manulife Investment Management. “We are excited about the company’s future and our ability to support Serverfarm through its next phase of growth on behalf of our clients.”
“Partnering with Manulife Investment Management, an investor that shares Serverfarm’s vision for growth and customer service, will allow us to effectively address the next wave of demand from our existing and new customers,” said Avner Papouchado. “Our new relationship with Manulife Investment Management provides Serverfarm with additional expertise and new capital to execute on a number of attractive development opportunities and give our customers a long-term growth runway.”
