Spark New Zealand has completed the sale of a 75% stake in its data centre business to Australian private equity firm Pacific Equity Partners (PEP), formally carving the assets out into a new standalone company named TenPeaks Data Centres. The transaction, first announced in August 2025, values the data centre business at up to NZD 705 million. This comprises a base enterprise value of NZD 575 million and up to a further NZD 130 million in earn-out enterprise value, contingent on performance targets being met by the end of December 2027.
Spark has received initial cash proceeds of NZD 453 million, with up to approximately NZD 98 million of additional deferred cash proceeds linked to those performance-based objectives. Spark said the proceeds will be used to reduce group net debt.
Spark CEO Jolie Hodson said the operator had built a sizeable platform that is now positioned for its next phase of growth. “Spark has built a strong data centre business in New Zealand, operating over 23MW of capacity at 11 facilities across the country. We’re excited to complete this transaction with PEP, which provides a funding pathway for the planned 130MW+ capacity development pipeline and significant growth potential beyond,” she said.
She added that Spark would remain closely involved through both ownership and customer relationships. “We look forward to working together through our 25% retained stake, and as a key data centre customer, to grow the business and create further value for our shareholders, while delivering the infrastructure that will support New Zealand’s digital future.”
Under the completed transaction, Spark has retained a 25% stake in TenPeaks Data Centres and holds two seats on the new company’s board. Hodson and Spark CFO Stewart Taylor have been appointed as non-executive directors, alongside Andrew Charlier, Evan Hattersley, and Michael Bendeli from PEP’s Secure Assets Fund.
PEP is investing via its Secure Assets Fund, which focuses on infrastructure growth platforms. The firm said the carve-out structure and standalone balance sheet would support accelerated expansion of capacity to meet demand from cloud, enterprise, and digital services customers in New Zealand.
Scale our capacity
TenPeaks Data Centres will be led by CEO Michael Stribling (above), who said the close marks the official launch of the new business. “We are excited to complete the transaction and officially launch our new data centres business. With our experienced team and the support of both PEP and Spark, we are confident in our ability to rapidly scale our capacity to meet New Zealand’s growing data storage needs,” he said.
At inception, TenPeaks operates more than 23MW of built capacity across 11 data centre facilities nationwide. As previously disclosed, the portfolio includes sites in Auckland and other major population centres, with expansion already planned. Spark has outlined advanced plans for a greenfield development on Auckland’s North Shore, as well as further extensions at its Takanini site in South Auckland, forming part of a development pipeline in excess of 130MW.
From a financial perspective, Spark said the transaction represents a FY25 pro-forma EBITDA multiple of 30.8x, based on assumed FY25 pro-forma EBITDA of NZD 22.9 million for the data centre business within the transaction perimeter. The company noted that the initial cash proceeds were reduced from the NZD 486 million figure cited at announcement due to the timing of capital expenditure, with final net proceeds subject to completion adjustments and the deferred cash component.
When the sale was announced last year, Spark said the introduction of a capital partner would allow it to realise near-term value while continuing to participate in the sector’s expansion through its retained stake. With regulatory approvals now secured and the transaction complete, TenPeaks Data Centres begins operations as an independent platform backed by both an incumbent telecom operator and a specialist infrastructure investor.