ROSTELECOM PJSC
ROSTELECOM PJSC: Rostelecom Board approves acquisition of DataLine
ROSTELECOM PJSC (RKMD)
Rostelecom Board approves acquisition of DataLine Moscow, Russia – November 20, 2019 – Rostelecom PJSC (MOEX: RTKM, RTKMP; OTCQX: ROSYY), announces that its Board of Directors has granted approval to its subsidiary Rostelecom Datacenters to acquire a 100% share of DataLine, the second largest datacentre provider in Russia after Rostelecom. The acquisition enhances Rostelecom investment case thanks to the following factors:
DataLine is one of the largest players in the data centres and cloud markets in Russia and provides collocation and virtualization, telecommunications and other auxiliary services. 2018 revenue amounted to RUB 5.3 billion. Through DataLine’s management of eight Tier III data centres and 4,800 racks in total, this acquisition will increase Rostelecom‘s total capacity of commercial data centres to 11,500 racks, and see it secure a significant share in the commercial data centers market (at the end of 2019 the total number is expected to stand at circa 42,000 racks[2]). The deal is in line with Rostelecom’s strategy to develop a geographically diversified network of data centres and an ecosystem of cloud-based digital services for corporate and government clients. The combination of infrastructure, products and professional services of both companies will enhance the cloud services offering (SaaS / Iaas / PaaS), and strengthen Rostelecom‘s role in the implementation of the Digital Economy project. Mikhail Oseevskiy, President of Rostelecom, commented: “The acquisition of DataLine is in–line with the global trend of consolidating cloud providers and creating large-scale infrastructure and product ecosystems that provide the most competitive and high-quality digital services. This strategic transaction will enable Rostelecom to significantly increase its share of high-margin cloud products in total revenue as corporate and state clients are increasingly transitioning to a business service model in IT amid the digitalization trend and the development of the State‘s Digital Economy projects.“ Pavel Kaplunov, Vice President for Cloud Services, commented: “DataLine will significantly strengthen our competitive position, contributing to Rostelecom‘s unrivalled leadership in the promising date centre segment and cloud providers which is growing at a double-digit pace. Joint competencies will ensure the sustainable development of our cloud ecosystem and the portfolio of products, services and solutions for our customers.“ * * * PJSC Rostelecom is the largest digital service provider, operating in all segments of the telecommunications market in Russia, it serves millions of households, the state and private enterprises across the country. Rostelecom is Russia’s undisputed market leader, providing high-speed Internet access to over 13.1 million users and pay-TV services to more than 10.3 million clients, over 5.5 million of which are subscribed to Rostelecom’s IPTV services on a national level. In the nine months of 2019, the Group generated RUB 242.6 billion of revenues, RUB 81.4 billion of OIBDA (33.6% of revenue) and RUB 16.4 billion of net income. The Group is the leading provider of telecommunications services to government bodies and corporates of all levels. Rostelecom is a key strategic innovator that provides solutions in the following fields: E-Government, cybersecurity, data–centers and cloud computing, biometry, healthcare, education and housing & utility services. The Group’s stable financial position is confirmed by its credit ratings. Rostelecom has been assigned ‘BBB-‘ and ‘BB+’ international credit ratings by Fitch Ratings and Standard & Poor’s respectively, and AA(RU) by ACRA. * * * Certain statements in this press release are forward-looking statements within the meaning of the U.S. federal securities laws and intended to be covered by the safe harbours created thereby. Those forward-looking statements include, but are not limited to:
Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from those expressed or implied by these forward-looking statements. These risks, uncertainties and other factors include:
Many of these factors are beyond the Company’s ability to control or predict. Given these and other uncertainties, readers are cautioned not to place undue reliance on any of the forward-looking statements contained herein or otherwise. The Company does not undertake any obligation to release publicly any revisions to these forward-looking statements (which are made as of the date hereof) to reflect events or circumstances upon the annual report publication or to reflect the occurrence of unanticipated events, except as may be required under applicable laws.
[1] Infrastructure as a service is one of the cloud computing service models, which provides clients with underlying IT infrastructure, such as virtual servers with pre-set computing capacity, operation systems and access to networks; [2] Based on the IKS Consulting data at the end of 2019 |
ISIN: | US7785291078 |
Category Code: | ACQ |
TIDM: | RKMD |
LEI Code: | 2534001D752JPNM0H170 |
Sequence No.: | 30353 |
EQS News ID: | 917577 |
End of Announcement | EQS News Service |