Connect with us

Technology

Recommended Cash Acquisition of Windward Ltd. by Octopus UK Bidco Limited (a newly formed company wholly-owned by FTV VIII, L.P. and its affiliates) to be Effected by Way of a Merger Under the Israeli Companies Law

Published

2 years ago

on

Not For Release, Publication or Distribution, In Whole or In Part, Directly or Indirectly In, Into or From Any Jurisdiction Where to Do So Would Constitute a Violation of The Relevant Laws or Regulations of Such Jurisdiction

This Announcement Is for Information Purposes Only and Is Not an Offer of Securities in Any Jurisdiction in Which Such Offer, Solicitation or Sale Would Be Unlawful Under the Securities Laws of Any Such Jurisdiction

This Announcement Contains Inside Information. Upon The Publication of This Announcement Via a Regulatory Information Service, This Inside Information Is Considered to Be in The Public Domain

LONDON, Dec. 24, 2024 /PRNewswire/ — The Boards of Windward Ltd. (LSE: WNWD) (“Windward” and, together with its subsidiaries, the “Windward Group”) and Octopus UK Bidco Limited (“Bidco”), a wholly-owned subsidiary of FTV VIII, L.P. (“Fund”) and its affiliates (together with Fund, the “Fund Group”), are pleased to announce that they have reached agreement on the terms of a recommended cash acquisition by Bidco of the entire issued and to be issued ordinary share capital of Windward (the “Acquisition”).

Terms of the Acquisition

Under the terms of the Acquisition, Windward Shareholders will be entitled to receive:

215 pence per Windward Share (the “Offer Price”) in cash.

The Acquisition values the entire issued and to be issued ordinary share capital of Windward at approximately £216 million on a fully diluted basis.

The Offer Price represents a premium of approximately:

47% to the Closing Price per Windward Share of 146 pence on the Latest Practicable Date;92% to the six-month volume weighted average Closing Price per Windward Share of 112 pence (being the volume weighted average Closing Price for the six-month period ended on the Latest Practicable Date);97% to the twelve-month volume weighted average Closing Price per Windward Share of 109 pence (being the volume weighted average Closing Price for the twelve-month period ended on the Latest Practicable Date); and39% to the IPO price of 155 pence (being the placing price per Windward Share at the time of the IPO on 6 December 2021).

The Offer Price assumes that Windward Shareholders will not receive any dividend, distribution or other return of capital (whether by way of reduction of share capital or share premium account or otherwise) (each a “Distribution”) following the date of this Announcement. Under the terms of the Merger Agreement, Windward is prohibited from making or declaring any Distribution on or prior to Completion. If any Distribution is nonetheless declared, made, paid or becomes payable by Windward, Bidco has the right to terminate the Merger Agreement.

Background to and reasons for the Acquisition

Fund has been assessing Windward and its business over recent months, having followed its development over a number of years. Fund believes that Windward is a highly attractive business with a strong management team and strategy, and that the Acquisition represents an attractive opportunity to increase exposure to the growing maritime compliance and supply chain end market. The Acquisition also represents an opportunity for enhanced data and AI led insight across the ecosystem.

Fund sees an opportunity to accelerate Windward’s continued expansion from its current market position within the maritime sector, into a broader supply chain analytics provider and plans to support the development of Windward’s future product roadmap under private ownership. For this, Windward may require investment, which could reduce profitability in the short to medium term, but should build the strong operational foundations required to support Windward’s next phase of growth, scale its platform globally and drive sustainable long-term value.

Fund is confident in the future prospects of Windward’s business and believes that moving to private ownership is in the long-term interest of Windward, its customers and its other stakeholders, and offers the best opportunity for Windward management to execute on its strategy and ambition to further accelerate the growth of the business.

Fund has a proven investment track record in the broader software sector and significant competence and know-how in scaling global software businesses. Fund will provide Windward with access to its Global Partner Network® of seasoned technology industry executives, as well as lend M&A expertise and resources to Windward as it leverages the existing platform to assist Windward with executing acquisitions to create long-term value.

Fund has strong confidence in Windward’s current management team and believes that Windward has a team of talented employees who will be key to Windward’s success going forward. Accordingly, Fund is committed to supporting the existing Windward management team in continuing to execute on its current strategy.

Fund believes that it is well placed to support Windward in the next stage of its development, by providing the capital necessary to accelerate Windward’s strategic plan and realise its full potential and international ambitions. Fund sees significant potential from supporting Windward to make further bolt-on and potentially transformational transactions internationally.

Fund considers Windward to be a strong strategic fit with its thematic investment focus and is uniquely positioned to create significant value for Windward and its stakeholders, having built a relationship with Windward over the past seven years.

Background on the Fund Group and Bidco

Octopus Merger Sub Ltd. (“SPV”) is a company limited by shares, incorporated in December 2024 under the laws of Israel. Bidco is a private limited company, incorporated in December 2024 under the laws of England and Wales.

SPV is a wholly-owned subsidiary of Bidco, which is itself a wholly-owned subsidiary of the Fund Group. Fund is a growth equity investment firm that has raised over US$6 billion in committed capital, to invest in high growth companies in the enterprise technology and services and financial technology and services sectors.

Fund has a long history of investing in founder-led companies and in October 2024 was included on Inc. “Founder Friendly Investors” list for the fourth year in a row.

Bidco is a newly established company formed by Fund for the purposes of the Acquisition and has neither traded prior to the date of this Announcement nor entered into any obligations other than in connection with the Acquisition.

Approval of the Audit Committee and Windward Independent Directors and recommendation of the Windward Independent Directors

The Windward Independent Directors, who have been so advised by Goldman Sachs Israel LLC, Tel Aviv Branch (“Goldman Sachs”) as to the financial terms of the Acquisition, unanimously consider the terms of the Acquisition to be fair and reasonable. In providing their advice to the Windward Independent Directors, Goldman Sachs have taken into account the commercial assessments of the Windward Independent Directors.

In addition to the Windward Independent Directors’ approval, the Acquisition requires the approval of the Audit Committee as the Windward Executive Directors have a personal interest in the Acquisition as a result of the Reinvestment (as further detailed in paragraph ‎8 of this Announcement). The Audit Committee unanimously approved the Acquisition prior to the approval of the Windward Independent Directors.

The Windward Independent Directors and the Audit Committee have each unanimously determined the Acquisition to be in the best interests of Windward (including its shareholders). The Windward Independent Directors unanimously recommend that Windward Shareholders vote in favour of the Acquisition at a General Meeting which will be convened in connection with the Acquisition. In accordance with the Israeli Companies Law, the Windward Executive Directors did not participate in the discussion of the Acquisition and did not vote on the Acquisition.

Each Windward Independent Director who holds Windward Shares has irrevocably undertaken to vote in favour of the Acquisition in respect of their own beneficial holdings of 573,962 Windward Shares representing, in aggregate, approximately 0.66% of Windward’s issued share capital on the Latest Practicable Date.

In addition, the Windward Executive Directors have irrevocably undertaken to vote in favour of the Acquisition in respect of their own beneficial holdings of, in aggregate, 6,610,092 Windward Shares representing, in aggregate, approximately 7.55% of Windward’s issued share capital on the Latest Practicable Date.

Further details of these irrevocable undertakings are set out in Appendix 2 to this Announcement.

Background to and reasons for the Windward Independent Directors’ recommendation

Since Windward’s AIM flotation in December 2021, Windward’s leadership team has delivered a highly attractive operational performance. Windward has more than doubled its ACV and more than tripled its global customer base over the last three financial years.

The Board of Windward and its management regularly review the performance, strategy, competitive position, opportunities, and prospects of Windward in light of the current business, economic climate, industry trends, and market environment.

While the Windward Independent Directors believe Windward is well positioned for future continued success and that the long-term prospects are strong as an independent listed entity, they also recognise that economic, regulatory and competitive uncertainties exist, many of which are beyond Windward’s control.

Following engagement with Fund, including the provision of detailed information under a non-disclosure agreement, the Windward Independent Directors have concluded that the proposal received from Fund, following a period of price negotiation and based on interest from other potential bidders, is likely to be more advantageous for Windward’s business and its other stakeholders than remaining listed on AIM, as the Acquisition is expected to provide Windward with increased access to the capital required to enable rapid expansion of its business.

The Windward Independent Directors have concluded that the proposal is attractive to Windward Shareholders, in that (i) it provides certainty to Windward Shareholders, as the proposal is deliverable given the limited conditions to Completion and (ii) Windward Shareholders will receive cash consideration only.

Windward Shareholder support

All Windward Independent Directors who hold Windward Shares have, in their capacities as Windward Shareholders, irrevocably undertaken to vote (or procure the vote) in favour of the Acquisition at a General Meeting in respect of their own beneficial holdings, amounting, in aggregate, to 573,962 Windward Shares representing, in aggregate, approximately 0.66% of Windward’s issued share capital on the Latest Practicable Date.

In addition, Bidco has received irrevocable undertakings from the Reinvesting Managers (including the Windward Executive Directors), to vote (or procure the vote) in favour of the Acquisition at a General Meeting in respect of their own beneficial holdings, amounting, in aggregate, to 13,290,004 Windward Shares representing, in aggregate, approximately 15.18% of Windward’s issued share capital on the Latest Practicable Date.

In total, Bidco has therefore received irrevocable undertakings from Windward Independent Directors and Reinvesting Managers (including the Windward Executive Directors) to vote (or procure the vote) in favour of the Acquisition at a General Meeting, amounting, in aggregate, to 13,863,966 Windward Shares, representing, in aggregate, approximately 15.84% of Windward’s issued share capital on the Latest Practicable Date.  

Bidco has also received irrevocable undertakings from certain Windward Shareholders to vote in favour of the Acquisition at a General Meeting, amounting, in aggregate, to 41,628,662 Windward Shares, representing, in aggregate, approximately 47.55% of Windward’s issued share capital on the Latest Practicable Date.

In total, Bidco has therefore received irrevocable undertakings to vote (or procure the vote) in favour of the Acquisition at a General Meeting, in respect of a total of 55,492,588 Windward Shares, representing, in aggregate, approximately 63.39% of Windward’s issued share capital on the Latest Practicable Date.

Each irrevocable undertaking referred to above (other than that provided by Gresham House Asset Management Ltd) remains binding in the event a higher competing offer is made for Windward by a third party, even in the event of a change in recommendation by the Windward Independent Directors. The irrevocable undertaking provided by Gresham House Asset Management Ltd lapses in the event a competing third party cash offer (where the consideration is not less than 105% of the cash consideration offered by Bidco under the Merger Agreement) for Windward is announced.

Bidco has also received non-binding letters of intent from certain Windward Shareholders, confirming their intention to vote (or procure the vote) in favour of the Acquisition at a General Meeting, in respect of, in aggregate, 11,828,226 Windward Shares, representing, in aggregate, approximately 13.52% of Windward’s issued share capital on the Latest Practicable Date. 

Further details of each of these irrevocable undertakings and the letters of intent are set out in Appendix 2 to this Announcement.

Structure, expected timetable and approvals

Completion of the Acquisition requires the approval of a simple majority of the Windward Shareholders present in person or by proxy and actually voting at a General Meeting. Therefore, the Windward Independent Directors intend to send a circular in the form of an information statement (“Information Statement”) to the Windward Shareholders as soon as possible and, in any event, by no later than 10 January 2025, the purpose of which is to convene a General Meeting enabling Windward Shareholders to vote on the Acquisition. Full details of the Acquisition will be set out in the Information Statement, which will also specify the actions to be taken by Windward Shareholders.

It is intended that the Acquisition will be effected by means of a merger of SPV into Windward in accordance with the provisions of Israeli Companies Law. The Acquisition is not governed by the City Code on Takeover and Mergers (the “Takeover Code”).

The parties currently anticipate that the Acquisition will be completed by the end of Q1 2025, subject to Windward Shareholder approval.

Commenting on the Acquisition, Brad Bernstein, Managing Partner of Fund, said:

“As global seaborne trade expands, regulatory regimes tighten and supply chain pressures mount, the need for advanced maritime intelligence and visibility has become imperative for global organisations to effectively operate and manage risk in an increasingly complex landscape. Windward has built a best-in-class maritime AI-based analytics platform spanning use cases across risk, compliance, trading and the supply chain and delivering tangible value to its growing blue-chip customer base worldwide.”

Commenting on the Acquisition, Jerome Hershey, Principal of Fund, said:

“Fund has a long track record of partnering with data and analytics leaders across the governance, risk and compliance sector, and we’ve long admired what Ami and the Windward team have built since our first meeting in 2017. The company’s attractive subscription revenue model demonstrates strong operating leverage and margin expansion. We look forward to partnering with the team to help drive their ambitious vision for product and geographic expansion and an exciting set of organic and inorganic growth initiatives.”

Commenting on the Acquisition, Ami Daniel, Chief Executive Officer of Windward, said:

“This marks an exciting next step in the evolution of Windward, providing the opportunity to build upon our first mover advantage in maritime generative AI through accelerated innovation and greater market reach. We are incredibly proud of the growth we have achieved while on the AIM market, and our ability to adapt and incorporate evolving technology, specifically generative AI.  We are truly grateful for our shareholders’ support to date, providing us with the funding to expand our offering, enter new markets and continuously create exciting new products. With the success of that investment evident in our accelerated growth rate and bigger scale, now is the time to replicate that success across additional geographic markets. In addition, being US-owned is expected to facilitate expedited penetration and growth in the US market.

The Fund team have an outstanding track record in supporting the scaling of founder-led software businesses globally and we believe that together we will be a significantly stronger organisation. For our customers, the additional investment will enable them to unlock far greater value from their data through our ambitious product roadmap, and for our employees, it provides increased job security and the confidence that we have the funding to drive forward together to achieve our potential.”

Commenting on the Acquisition, The Lord Browne of Madingley, Non-Executive Chairman of Windward, said:

“Windward has become firmly established on the world stage, but as an organisation we recognise there remains an untapped opportunity ahead to further transform additional spheres of global trade. Following due consideration, the Windward Independent Directors believe this transaction is in the best interests of all stakeholders, including our shareholders and employees; providing the environment to facilitate this expansion and support the future growth of the company.”

This summary should be read in conjunction with the full text of this Announcement and the Appendices which can be accessed here: https://www.londonstockexchange.com/news-article/WNWD/recommended-cash-acquisition-of-windward-ltd/16825703 

Certain definitions and terms used in this Announcement are set out in Appendix 1. Appendix 2 to the Announcement contains details of irrevocable undertakings and the letters of intent received by Bidco. 

For more information, please visit: https://windward.ai/ 

Media Contact

David Hoffman
Headline Media
david@headline.media
+972-52-842-195

CMS Cameron McKenna Nabarro Olswang LLP and Epstein Rosenblum Maoz (ERM) are acting as legal advisers to Windward. Willkie Farr & Gallagher (UK) LLP and Gornitzky & Co. are acting as legal advisers to Fund, Bidco and SPV.

The statements contained in this Announcement are made as at the date of this Announcement, unless some other time is specified in relation to them, and publication of this Announcement shall not give rise to any implication that there has been no change in the facts set forth in this Announcement since such date. Nothing contained in this Announcement shall be deemed to be a forecast, projection or estimate of the future financial performance of Windward, the Windward Group, Bidco, SPV, Fund or the Fund Group except where otherwise stated.

IMPORTANT NOTICE

Goldman Sachs is acting exclusively for Windward as its financial adviser and no one else in connection with the Acquisition and other matters referred to in this Announcement and will not be responsible to anyone other than Windward for providing the protections afforded to clients of Goldman Sachs or for providing advice in connection with the Acquisition or any other matter or arrangement referred to in this Announcement.

Canaccord Genuity Limited (“Canaccord Genuity”), which is authorised and regulated in the United Kingdom by the Financial Conduct Authority, is acting exclusively for Windward as its nominated adviser and broker and no one else in connection with the Acquisition and will not be responsible to anyone other than Windward for providing the protections afforded to clients of Canaccord Genuity or for providing advice in connection with the Acquisition or any other matter or arrangement referred to in this Announcement.

N.M. Rothschild & Sons Limited (“Rothschild & Co”), which is authorised and regulated by the Financial Conduct Authority is acting exclusively for Fund, Bidco and SPV and for no one else in connection with the Acquisition and will not regard any other person as its client in relation to the Acquisition and will not be responsible to anyone other than Fund, Bidco and SPV for providing the protections afforded to clients of Rothschild & Co, nor for providing advice in relation to any matter referred to in this Announcement.

Further information

The Acquisition is not governed by the Takeover Code. As set out in Windward’s admission document dated 30 November 2021, Windward has incorporated certain provisions in its articles of association, which seek to provide shareholders with a similar standard of protections otherwise afforded by the Takeover Code. These include provisions similar to Rule 9 of the Takeover Code and therefore may require that any person who acquires, whether by a series of transactions over a period of time or not, an interest (as defined in the Takeover Code) in shares which, taken together with shares in which it is already interested or in which persons acting in concert with it are interested, carry 30% or more of the voting rights of Windward, is normally required to make a general offer to all the remaining shareholders to acquire their shares. Additionally, similar to Rule 9 of the Takeover Code, the articles of association of Windward also provide that when any person, together with persons acting in concert with it, is interested in shares which, in aggregate, carry more than 30% of the voting rights of Windward, but does not hold shares carrying 50% or more of such voting rights, a general offer will normally be required if any further interest in shares is acquired by any such person. Please refer to the latest articles of association available at the Windward website at https://windward.ai for further details.

This Announcement is for information purposes only and does not constitute an offer to sell or an invitation to purchase any securities or the solicitation of an offer to buy any securities, pursuant to the Acquisition or otherwise. The Acquisition will be made solely by means of an Information Statement to be sent to the Windward Shareholders, which will contain the full terms and conditions of the Acquisition, including details of how the Acquisition can be approved.

Windward accepts no responsibility for the information contained in this Announcement other than that which relates to Windward and any member of the Windward Group and the recommendation of the Windward Independent Directors in relation to the Acquisition. Fund accepts no responsibility for the information contained in this Announcement other than information relating to Bidco, SPV, Fund and the Fund Group and accepts no responsibility for any information that that relates to Windward and any member of the Windward Group and the recommendation of the Windward Independent Directors in relation to the Acquisition.

Overseas jurisdictions

The release, publication or distribution of this Announcement in certain jurisdictions may be restricted by law. Persons who are not resident in the United Kingdom or who are subject to the laws of other jurisdictions should inform themselves of, and observe, any applicable requirements. Any failure to comply with these restrictions may constitute a violation of securities laws of any such jurisdictions. To the fullest extent permitted by law, Windward and Fund disclaim any responsibility or liability for the violation of such restrictions by such person.

Notice to US holders

The Acquisition relates to the shares of an Israeli company and is being effected by way of a reverse triangular merger under Israeli Companies Law. The Acquisition will not be subject to any review or registration procedures of any securities regulatory authority outside of Israel and has not been approved or recommended by any such securities regulatory authority outside of Israel. In particular, neither this Announcement nor the Information Statement has been, or will be, approved by the United States Securities and Exchange Commission or any other authority of the United States, nor has any such authority determined or approved, or will determine or approve, the adequacy or accuracy of the information contained in this Announcement or the Information Statement.

The Acquisition is subject to the disclosure requirements and practices applicable in Israel which differ from the disclosure requirements of US tender offer and proxy solicitation rules.  Accordingly, the Acquisition may be subject to disclosure and other procedural requirements, including with respect to the Acquisition timetable, financial information and basis of accounting, settlement procedures and timing of payments that are different from those applicable under US tender offer laws.

In accordance with Rule 14e-5 under the Exchange Act, Fund, certain affiliated companies and the nominees or brokers (acting as agents) may make certain purchases of, or arrangements to purchase, Windward Shares during the period between the date of this Announcement and the date on which Windward Shareholders approve the Acquisition at a General Meeting. If such purchases or arrangements to purchase were to be made, they would be made outside the US either in the open market at prevailing prices or in private transactions at negotiated prices and would comply with applicable law, including, to the extent applicable, the Exchange Act. Any information about such purchases will be disclosed as required in the UK and reported to a Regulatory Information Service in the UK.

Financial information included in this Announcement has been, or will have been, prepared in accordance with accounting standards that may not be comparable to financial information of US companies or companies whose financial statements are prepared in accordance with generally accepted accounting principles in the US.

The receipt of consideration by a US holder for the transfer of its Windward Shares pursuant to the Acquisition may be a taxable transaction for US federal income tax purposes and under applicable US state and local, as well as non-US and other, tax laws. Each affected Windward Shareholder is urged to consult their independent professional adviser immediately regarding the tax consequences of the Acquisition applicable to them, including under applicable US federal, state and local, as well as non-US and other, tax laws.

It may be difficult for US holders of Windward Shares to enforce their rights and claims arising out of the US federal securities laws since Windward is organised in countries other than the United States and some or all of their officers and directors may be residents of, and some or all of their assets may be located in, jurisdictions other than the United States. US holders may have difficulty effecting service of process within the United States upon those persons or recovering against judgments of US courts, including judgments based upon the civil liability provisions of the US federal securities laws. US holders may not be able to sue a non-US company or its officers or directors in a non-US court for violations of US securities laws. Further, it may be difficult to compel a non-US company and its affiliates to subject themselves to a US court’s judgment.

Cautionary note regarding forward-looking statements

This Announcement contains certain forward-looking statements with respect to the financial condition, results of operations and businesses of Windward and Fund and their respective Groups, and certain plans and objectives of Fund. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Windward and Fund to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions, including as to future potential cost savings, synergies, earnings, cash flow, return on average capital employed, production and prospects. These forward-looking statements are identified by their use of terms and phrases such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “goals”, “intend”, “may”, “objectives”, “outlook”, “plan”, “probably”, “project”, “risks”, “seek”, “should”, “target”, “will” and similar terms and phrases.

Each forward-looking statement speaks only as of the date of this Announcement. None of Windward, the Windward Group, Bidco, SPV, Fund or the Fund Group, undertakes any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except to the extent legally required. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this Announcement.

 

View original content:https://www.prnewswire.com/news-releases/recommended-cash-acquisition-of-windward-ltd-by-octopus-uk-bidco-limited-a-newly-formed-company-wholly-owned-by-ftv-viii-lp-and-its-affiliates-to-be-effected-by-way-of-a-merger-under-the-israeli-companies-law-302338820.html

SOURCE Windward

Related Topics:
Continue Reading

Technology

Healthcare Data Center Market to Reach USD 37.11 Billion by 2035 as AI Genomics, EHR Resilience and Hosted Capacity Reshape Healthcare Infrastructure – DC Market Insights

Published

25 minutes ago

on

October 23, 2026

By

Market grows at a 9.15% CAGR from USD 15.46 billion in 2025; AI genomics and research computing expands 16.71% a year, while North America holds 46.0% of spending

LONDON, Oct. 23, 2026 /PRNewswire/ — The “Healthcare Data Center Market – Growth, Share, Opportunities & Competitive Analysis, 2026-2035” report has been added to the DC Market Insights offering. The global Healthcare Data Center Market was valued at USD 15.46 billion in 2025, is estimated at USD 17.34 billion in 2026, and is projected to reach USD 37.11 billion by 2035, growing at a CAGR of 9.15% from 2025 to 2035. DC Market Insights finds that healthcare infrastructure is splitting between general-purpose EHR workloads that increasingly move to hosted environments and higher-value AI, imaging, research and resilience workloads that require dedicated or colocated capacity.

Healthcare Data Center Market at a Glance

Metric

Value (DC Market Insights estimate)

Market size, 2020

USD 9.77 billion

Market size, 2025 (base year)

USD 15.46 billion

Market size, 2026

USD 17.34 billion (+12.16% year on year)

Market size, 2030

USD 25.10 billion

Market size, 2035

USD 37.11 billion

CAGR 2025-2035

9.15% (low case 7.13%, high case 10.69%)

Largest component

IT hardware, 70.7% of 2025 value

Fastest-growing workload

AI genomics and research computing, 16.71% CAGR

Leading region

North America, 46.0% (USD 7.11 billion)

Fastest-growing region

Asia Pacific, 11.72% CAGR

Largest end user

Hospitals and health systems, 47.0% of 2025 value

Key Takeaways

IT hardware accounts for USD 10.93 billion, or 70.7% of 2025 market value, reflecting the high server, storage and accelerator content of clinical and research workloads.AI genomics and research computing is the fastest workload, rising 16.71% a year from USD 2.30 billion in 2025 to USD 10.78 billion by 2035.Hospitals and health systems remain the largest end user at USD 7.27 billion in 2025, while pharmaceutical and life sciences grows fastest among end users at 11.61% a year.On-premises owned sites hold 60.0% of 2025 value, but wholesale and build-to-suit grows 14.01% a year as research and AI clusters move into purpose-built capacity.North America leads with 46.0% of 2025 spending, while Asia Pacific grows fastest at 11.72%; India is the fastest-growing large country at 18.37% a year.

Scope & Segmentation – Healthcare Data Center Market

The report analyzes the market across the following segments:

Component: IT Hardware; Colocation and Hosting Services; Electrical and Mechanical Infrastructure; Construction and Fit-OutEnd User: Hospitals and Health Systems; Pharmaceutical and Life Sciences; Payers and Health Insurers; Health IT and Medtech Vendors; Public Health and Research InstitutesWorkload: EHR and Clinical Applications; Medical Imaging and PACS; AI Genomics and Research Computing; Claims and Revenue Cycle; Backup and Disaster Recovery; Collaboration and Other WorkloadsDeployment Model: On-Premises Owned Sites; Retail Colocation; Wholesale and Build-to-Suit; Vendor-Hosted Private CloudGeography: North America; Europe; Asia Pacific; Latin America; Middle East and Africa, with 12 country forecasts

Report Updated: Oct. 22, 2026

Get Free Sample Report – Healthcare Data Center Market

“Healthcare data center demand is moving in two directions at once: hospitals are reducing general-purpose owned halls while AI, imaging, research and cyber-resilience requirements add denser, higher-value infrastructure. Our model shows AI genomics and research computing growing 16.71% a year and wholesale or build-to-suit capacity growing 14.01%, while the owned-site share falls from 60.0% in 2025 toward 45.0% by 2035. That makes compliant hosted capacity, AI-ready infrastructure and recoverability the strongest growth pools through the forecast period.”

— Amit Jain, Senior Consultant, ICT & Emerging Technologies, DC Market Insights, report author

Why This Report Matters
Healthcare data centers sit at the intersection of patient-data availability, clinical application performance, medical imaging, pharmaceutical research and cyber resilience. The report helps health systems, life sciences companies, colocation operators, cloud and hosting providers, equipment vendors and investors size infrastructure demand while separating public-cloud migrations that leave the market from leased and owned capacity that remains in scope.

Key Attributes

Report attribute

Details

Historical Period

2020-2024

Base Year

2025

Forecast Period

2026-2035

Market Size 2025

USD 15.46 billion

Market Size 2026

USD 17.34 billion

Market Size 2035

USD 37.11 billion

CAGR 2025-2035

9.15% (low 7.13%, high 10.69%)

Leading Region

North America, 46.0%

Report Format

PDF + Excel

How Big Is the Healthcare Data Center Market in 2026?
DC Market Insights values the Healthcare Data Center Market at USD 17.34 billion in 2026, 12.16% above 2025, as backup sites, AI clusters for drug discovery and leased halls for electronic health records are added faster than hospital server rooms close. The model places healthcare IT load at 3,300 MW in 2025 and projects it to double to 6,600 MW by 2035, with accelerator racks taking a larger share of the mix.

Year

Market size

2020

USD 9.77 billion

2025

USD 15.46 billion

2026

USD 17.34 billion (+12.16% year on year)

2030

USD 25.10 billion

2035

USD 37.11 billion

Source: DC Market Insights, Healthcare Data Center Market report, Oct. 22, 2026.

Why Do AI and Research Workloads Raise Healthcare Data Center Spend?
AI infrastructure changes the value of each megawatt. DC Market Insights estimates a conventional healthcare MW carries about USD 3.05 million a year of hardware, while an AI MW carries about USD 8.30 million. That premium comes from GPU systems, high-speed networking, large research datasets and the supporting power and cooling required for accelerated computing. The result is that market value grows faster than healthcare IT load as the accelerator share rises from about 5% in 2025 toward 22% by 2035.

Which Component Leads Healthcare Data Center Spending?
IT hardware remains the largest component, but colocation and hosting services grow faster as providers absorb EHR, imaging, backup and research workloads that institutions no longer want to operate in ageing hospital server rooms.

Component

2025 value

Share 2025

2035 value

CAGR

IT Hardware

USD 10,931.24M

70.7 %

USD 24,479.40M

8.40 %

Colocation and Hosting Services

USD 3,136.32M

20.3 %

USD 9,496.08M

11.72 %

Electrical and Mechanical Infrastructure

USD 967.87M

6.3 %

USD 2,058.14M

7.84 %

Construction and Fit-Out

USD 427.77M

2.8 %

USD 1,078.98M

9.69 %

DC Exclusive: Hospital Data Center Exit Tracker
DC Market Insights tracks 14 named healthcare infrastructure moves from 2014 through 2026. Ten moved workloads to public cloud, two went to colocation and two built new owned sites. The pattern explains why owned data centers can lose share even while the overall market expands: general-purpose EHR estates leave older halls, while AI and research clusters arrive as new owned, wholesale or colocated capacity. The model therefore takes the owned-site share from 60.0% in 2025 toward 45.0% by 2035.

Workload

2025 value

Share 2025

2035 value

CAGR

EHR and Clinical Applications

USD 4,638.95M

30.0 %

USD 8,907.02M

6.74 %

Medical Imaging and PACS

USD 2,783.38M

18.0 %

USD 6,309.14M

8.53 %

AI Genomics and Research Computing

USD 2,297.83M

14.9 %

USD 10,777.50M

16.71 %

Claims and Revenue Cycle

USD 2,010.22M

13.0 %

USD 4,082.39M

7.34 %

Backup and Disaster Recovery

USD 2,164.85M

14.0 %

USD 4,453.51M

7.48 %

Collaboration and Other Workloads

USD 1,567.97M

10.1 %

USD 2,583.04M

5.12 %

Which Region Leads the Healthcare Data Center Market?

North America leads because the United States combines a large installed hospital base, near-universal certified EHR adoption and significant pharmaceutical research infrastructure. Asia Pacific grows fastest as India, China and other markets add local capacity under health-data localization and digital-health programs.

Indicator

2025 / Base

Outlook

Leading region

North America, 46.0% (USD 7.11B)

USD 15.77B by 2035; remains the largest regional spending pool

Fastest-growing region

Asia Pacific, 11.72% CAGR

Reaches USD 9.83B by 2035 as India and China add domestic health-data capacity

Fastest large country

India, 18.37% CAGR

USD 247.41M in 2025 to USD 1.34B by 2035

Largest country

United States, USD 6.49B in 2025

Remains the largest national market through the forecast

How Could the 2035 Forecast Change?

The 2035 outcome depends on how quickly hospital EHR estates move to public cloud, how much pharmaceutical AI is purchased as cloud capacity rather than dedicated infrastructure, and how strongly resilience rules push institutions to maintain recoverable private or colocated capacity.

Scenario

Assumption

2035 value

CAGR 2025-2035

Low

Faster EHR migration to public cloud; more pharma AI bought as cloud capacity

USD 30.80B

7.13 %

Base

Healthcare IT load reaches 6,600 MW; 22% on AI racks; 55% leased

USD 37.11B

9.15 %

High

Stricter 72-hour restore requirements and more drug makers build owned AI factories

USD 42.68B

10.69 %

Competitive Landscape and Recent Developments
The five largest colocation providers account for about 31% of the USD 3.14 billion healthcare colocation and hosting market in 2025, leaving the sector fragmented. Competition spans colocation, EHR hosting, cloud services, AI hardware and the power and cooling systems required for hospital and life-sciences infrastructure.

Companies profiled include:

Equinix; Digital Realty; Iron Mountain Data Centers; CyrusOne; NTT DATA; Epic Systems (Epic Hosting); Oracle (Oracle Health); Microsoft (Nuance); Amazon Web Services; Google Cloud; Dell Technologies; Hewlett Packard Enterprise; NVIDIA; Cisco Systems; Schneider Electric; Vertiv.

In July 2026, WellSpan Health completed the move of more than 300 applications and 7.5 PB of data to AWS in 17 weeks.In April 2026, the U.S. Department of Veterans Affairs requested USD 4.2 billion for its EHR in fiscal 2027, including USD 745 million for infrastructure readiness.In February 2026, Eli Lilly’s LillyPod AI factory with more than 9,000 petaflops went live in Indianapolis.In February 2026, five Ontario hospitals in Transform Shared Service Organization moved their EHR to Oracle Cloud Infrastructure, cutting page-load time by 71%.In January 2026, NVIDIA and Eli Lilly agreed to invest up to USD 1 billion over five years in an AI co-innovation lab.In November 2025, India notified the DPDP Rules with an 18-month phased timeline.

Frequently Asked Questions

What is the size of the Healthcare Data Center Market?
USD 15.46 billion in 2025 and USD 17.34 billion in 2026, projected to reach USD 37.11 billion by 2035 at a 9.15% CAGR.

Which component leads the market?
IT hardware, with USD 10.93 billion or 70.7% of 2025 spending.

Which workload grows fastest?
AI genomics and research computing, at 16.71% a year through 2035.

Which healthcare end user spends the most?
Hospitals and health systems, with USD 7.27 billion or 47.0% of 2025 market value.

Which region leads?
North America with USD 7.11 billion or 46.0% of 2025 value; Asia Pacific grows fastest at 11.72% a year.

Who are the leading suppliers?
Equinix, Digital Realty, Iron Mountain Data Centers, CyrusOne and NTT DATA are among the leading colocation providers, alongside major healthcare hosting, cloud, hardware and infrastructure vendors.

Methodology

DC Market Insights builds the healthcare data center market bottom-up from 3,300 MW of healthcare IT load in 2025 and spending per MW for hardware, colocation and hosting, electrical and mechanical infrastructure, and construction and fit-out. The model separates conventional and AI MW, applies leased-capacity economics, and reconciles end-user, workload, deployment, regional and country splits to the total market before applying forecast assumptions.

Download Sample Report – Healthcare Data Center Market

Related Reports from DC Market Insights
Data Center Colocation Market
AI Data Center Market
Data Center Outsourcing Market
Multi-Tenant Data Center Market
Data Center Virtualization Market

DC Market Insights Data & Tools

Explore live datasets and decision tools used across DC Market Insights research:

Data Center Database
Data Center Map
Data Center Operators
Global Capacity Tracker
Deal Tracker
Power & Policy Tracker
PUE Calculator
Construction Pipeline
Deal Comps
Site Risk
Electricity Rates
Data Center Footprint

About DC Market Insights

DC Market Insights is a dedicated research and consulting firm that empowers data center leaders with actionable intelligence. We combine rigorous market research, advanced analytics and practical advisory support to help organizations make confident decisions in an increasingly complex digital infrastructure landscape. Our goal is to transform data into clarity, giving clients the ability to act decisively on strategy, investment and execution.

Contact Us
DC Market Insights
Tower C-1105, S 25, Akash Tower, Vishal Nagar, Pimple Nilakh, Haveli, Pune – 411027, India
Email: sales@dcmarketinsights.com
United States: +1 628 262 7656
United Kingdom: +44 7453 598 606
Web: www.dcmarketinsights.com

View original content to download multimedia:https://www.prnewswire.co.uk/news-releases/healthcare-data-center-market-to-reach-usd-37-11-billion-by-2035-as-ai-genomics-ehr-resilience-and-hosted-capacity-reshape-healthcare-infrastructure—dc-market-insights-302918129.html

Continue Reading

Technology

City of Hope Cancer Center Chicago Unites Industry Leaders for Health Technology Innovation Roundtable

Published

25 minutes ago

on

October 23, 2026

By

CHICAGO, Oct. 23, 2026 /PRNewswire/ — Faster access to care, more affordable treatment and policies that support innovation were central themes of a Health Technology Innovation Roundtable convened by City of Hope® Cancer Center Chicago on Thursday, October 15, at its hospital in Zion.

The discussion brought together Congressman Brad Schneider (IL-10) and leaders from City of Hope, Vantive and Zocdoc to examine how technology can help bend the health care cost curve, connect patients with care sooner and expand access to specialized treatment.

“Thank you to City of Hope in Zion for graciously hosting our recent roundtable to discuss how emerging health technologies are shaping patient care, access, and affordability,” said Schneider. “I am proud to represent a district where so many people work in the life sciences field to advance innovation. This convening was an important opportunity to hear directly from health technology innovators about the progress they are making to better connect patients with lifesaving care and how we can work together. I will continue to partner with City of Hope and the health technology experts throughout our district to ensure more people have access to the cutting-edge treatment and testing they deserve.”

The conversation spanned digital appointment scheduling, home dialysis, surgical robotics, artificial intelligence and remote monitoring. Zocdoc’s digital marketplace connects patients with available appointments, helping fill openings that might otherwise go unused. Vantive’s work in kidney care, including home dialysis, illustrated how technology can expand options for where and how patients receive treatment.  City of Hope’s experience with advanced surgery and wearable devices highlighted opportunities to bring specialized expertise closer to patients and support recovery at home.

“Technological advancements continue to evolve rapidly, and keeping up with them can feel like a job unto itself,” said Pete Govorchin, president of City of Hope Chicago. “Having an opportunity to pause and reflect on the progress we have seen thus far, as well as look ahead to what’s next alongside a distinguished panel of respected professionals, is critical.”

The discussion also addressed barriers that can keep innovation from reaching patients, including state licensing requirements, limited broadband, outdated regulations and reimbursement challenges. Access for rural communities and veterans was a recurring concern, alongside the need to measure how new technologies improve outcomes and reduce avoidable costs.

“As both a developer and adopter of advanced surgical technologies, City of Hope is well positioned to provide practical, evidence-based insights into how robotic surgery and other procedures, delivered remotely, could improve access, enhance quality, and support the future of patient-centered care,” said Dr. Yuman Fong, a City of Hope surgical oncologist.

Joining Schneider, Govorchin and Fong were Chris Toth, CEO of Vantive; Kyle Jackson, Vantive’s executive director of government affairs and market development; and Ilyssa Meyer, Zocdoc’s director of government affairs.

“I was proud to be part of an important convening of health technology experts discussing how we can continue to work together to connect more patients to care and innovative treatment. Rep. Schneider’s leadership on the bipartisan, bicameral Health ACCESS Act is an important next step in turning the innovations discussed at the recent roundtable into broader access to care,” added Meyer. “By reducing barriers to digital health services and online appointment scheduling, the bill can help connect more patients with the care they need.”

About City of Hope

City of Hope’s mission is to make hope a reality for all touched by cancer and diabetes. Founded in 1913, City of Hope has grown into one of the largest and most advanced cancer research and treatment organizations in the United States, and one of the leading research centers for diabetes and other life-threatening illnesses. City of Hope research has been the basis for numerous breakthrough cancer medicines, as well as human synthetic insulin and monoclonal antibodies. With an independent, National Cancer Institute-designated comprehensive cancer center that is ranked among the nation’s top cancer centers by U.S. News & World Report at its core, City of Hope’s uniquely integrated model spans cancer care, research and development, academics and training, and a broad philanthropy program that powers its work. City of Hope’s growing national system includes its Los Angeles campus, Orange County, California, campus, a network of clinical care locations across Southern California and cancer treatment centers and outpatient facilities in the Atlanta, Chicago and Phoenix areas. City of Hope’s affiliated group of organizations includes Translational Genomics Research Institute and AccessHope™. For more information about City of Hope, follow us on Facebook, X, YouTube, Instagram and LinkedIn.  

View original content to download multimedia:https://www.prnewswire.com/news-releases/city-of-hope-cancer-center-chicago-unites-industry-leaders-for-health-technology-innovation-roundtable-302917568.html

SOURCE City of Hope Cancer Center Chicago

Continue Reading

Technology

Kin Becomes First U.S. Home Insurer to Enable WebMCP for AI Shopping

Published

25 minutes ago

on

October 23, 2026

By

Consumers can now use ChatGPT to efficiently shop Kin’s digital home insurance experience

CHICAGO, Oct. 23, 2026 /PRNewswire/ — Building on its recent announcement that AI shopping agents like Meta’s Muse are welcome to shop on Kin.com, Kin is making its digital home insurance experience even easier for AI to shop. Kin, the direct-to-consumer provider of insurance and home finance solutions for homeowners, today announced that it has enabled WebMCP in its digital quoting experience. The new capability gives ChatGPT a faster and more efficient way to interact with Kin.com on a consumer’s behalf.

Homeowners can go from their AI agent prompt to a customized Kin home insurance quote ready for purchase in minutes due to the data-informed Kin.com quoting process.

“We said that Kin will win the AI shopping experience, and we meant it,” said Kin Founder and CEO Sean Harper. “People are going to increasingly ask AI to do the tedious work of shopping for them. We want someone to be able to tell ChatGPT, ‘Help me shop for home insurance,’ and make it incredibly easy for that AI agent to shop Kin.”

Unlike plug-ins that require installation, WebMCP is an open web standard which lets AI agents work directly with Kin.com, creating a more efficient way to interact with Kin’s digital experience, and making it easier for them to help consumers shop for home insurance. For consumers, that means AI can do more of the repetitive work involved in insurance shopping, while Kin makes its experience easier for those AI agents to navigate. 

Built for the Way Consumers Will Shop

The launch builds on Kin’s announcement that it would welcome Meta’s Muse and other AI shopping agents to Kin.com rather than block them. In Kin’s testing, Muse was able to retrieve home insurance quotes after asking consumers only a handful of questions. Likewise, with ChatGPT, Kin testing found consumers could easily price out home insurance in a clear side-by-side view with minimal questions. The technology improves daily, and Kin is committed to implementing open standards like WebMCP, which ChatGPT supports for paid users on its browser-based platform. While free ChatGPT accounts cannot use this protocol, consumers can still easily get a quote at kin.com.

Kin was built to sell home insurance directly to consumers through a digital experience, without relying on external agents. It also analyzes thousands of data points about individual homes, meaning much of the information needed to generate a quote can already be gathered without asking the homeowner.

“We didn’t have to reinvent Kin for AI shopping,” Harper said. “We already built a direct digital experience, we already have the data to answer most of the questions about a home, and we don’t depend on someone in the middle to sell the product. AI shopping rewards a lot of the things we’ve been building for years.”

A New Way to Shop for Insurance

Kin expects AI agents to become increasingly capable of helping consumers gather information, understand coverage and shop across insurance providers. As those capabilities improve, Kin plans to continue making its digital experience easier for both people and the AI agents working on their behalf.

“Five years from now, opening a bunch of browser tabs and filling out the same information over and over is going to seem pretty antiquated,” Harper said. “You’ll tell your AI what you need and it will go do the work. We’ve built Kin to win in that world.”

About Kin
Kin helps homeowners save money, simplify tasks, and protect their most valuable assets. By offering direct-to-consumer digital home and auto insurance alongside home finance services, the company focuses on supporting underserved homeowners in states with high catastrophic risk. Kin provides more convenient and affordable home and auto insurance coverage by eliminating the need for external agents and analyzing thousands of data points to provide transparent, accurate pricing. Kin’s AI-native technology platform delivers a seamless customer experience, customized options, and fast, high-quality service. To learn more, visit www.kin.com.

View original content to download multimedia:https://www.prnewswire.com/news-releases/kin-becomes-first-us-home-insurer-to-enable-webmcp-for-ai-shopping-302917809.html

SOURCE Kin Insurance, Inc.

Continue Reading

Trending