Connxion signs MoU for China JV

Data services company Connxion (ASX:CXN) is on track to launch its Chinese joint venture, after signing the final agreement with local data centre operator partner GDS

Data and transaction services company Connxion (ASX:CXN) has signed the final agreement to establish a joint venture in China with Global Data Solutions (GDS).

Connxion said it had executed a formal MoU with GDS, a China-based data centre operator, to set up the JV. It is now on track to begin operations in Q4.

Connxion's CEO, Bill Brooks, said the company planned to invest at least 10 million yuan ($1.5 million) in Connxion China over the next two to three years.

“Partnering with GDS will allow Connxion to enter the sizeable Chinese market with minimal capital expenditure, whilst providing access to numerous leading businesses within [our] target industries,” he said.

GDS was chosen because it already has a substantial data centre presence – it owns and operates nine Tier 4 data centres across China.

The venture will be 90 per cent owned by Connxion, with GDS holding the remainder. The terms of the agreement grant Connxion preference in using GDS data centres, but do not obligate their use, Brooks said.

Both Connxion and GDS are also negotiating with a number of potential channel partners for the businesses, in Connxion's targeted industries, he said.

He added that he expects the JV to contribute to revenue and profits this financial year, and that Connxion will pursue a capital raising to meet its project commitment of between $1.5 million and $2.5 million.

Connxion on Wednesday formally changed its name from Connxion Ventures Limited to Connxion Limited.

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags ConnxionGlobal Data Solutions (GDS)Connxion Ventures Limitedname changeConnxion Limitedjoint venture

More about BillGlobal Data Solutions

Show Comments