News: IMI Limited expands data centre management strategy

IMI Limited (ASX:IMI) has entered into an agreement to acquire ADX Management in exchange for $6 million worth of IMI shares based on an issue price of $0.002.

IMI has terminated its previous agreement with White Data Limited.

ADX is a specialist management company, manager of the Australian Data Exchange Trust, and is focussed on becoming a leading provider of data centre, disaster recovery and technology solutions in Australia.

The Trust has entered into an exclusivity agreement to acquire a 24,000 square metre property at Tullamarine in Victoria for conversion into a major data centre.

The Trust has a non-binding heads of agreement to lease the first stage of the Tullamarine data centre to Ascalon Pty Ltd for $8.1 million per annum.
 
ADX intends to offer data centre facilities and solutions to cloud computing service providers, telecommunications and information technology providers, and corporate and government departments generally.

In addition, the Trust has an exclusivity agreement to acquire a major former newspaper print facility at Tullamarine, and on completion on the acquisition will also own a data centre development site in Brisbane.

On completion of the acquisition, IMI will have a right to 35.5% of the units in the Trust through a $3 million convertible loan.

IMI, through ADX, expects to receive management fees as manager of the Trust, based on the Trust's gross asset value, property acquisition and fit-out fees, and performance fees.

IMI will receive a Responsible Entity fee from the Trust equivalent to 1% of the gross assets of the trust per annum.

IMI will also participate in any distributions by the Trust on conversion of its convertible loan.

The acquisition is subject to shareholder approval and re- compliance with Chapters 1 & 2 of the ASX Listing Rules.