The Ontario Teachers’ Pension Plan is selling Australian data centre provider Metronode Group to Equinix Inc. for $1 billion.

The pension fund initially bought a 70 per cent stake in Metronode in 2013 through its acquisition of the parent company, Nextgen Group Holdings, and increased its holding to 100 per cent in 2016. Since that time, Ontario Teachers’ has invested about $300 million to expand the company’s capabilities, according to a press release.

Read: Ontario Teachers’ completes Metronode acquisition

“This investment directly fits our strategy of working with companies with strong management teams and growth prospects to add value for all stakeholders,” said Jane Rowe, senior managing director of private capital at Ontario Teachers’, in the release.

“We remain very interested in investing in Australia, and are pleased with this positive outcome for all involved, including our members, Metronode, its new owner and their customers as they move forward in their next phase of growth.”

The parties expect the all-cash transaction to close in the first half of 2018.

Read: Why big pension funds love Australian ports

In other news, Ontario Teachers’ also announced a partnership with private equity firm FountainVest Partners to invest in wellness brand the Pure Group. Headquartered in Hong Kong, the Pure Group’s activities include yoga studios; an online yoga video platform; fitness centres; raw, organic foods; and activewear.

“There are strong growth opportunities in Asia’s premium fitness market and we look forward to using our sector expertise to support Pure in taking the next step,” said Jo Taylor, senior managing director, international, at Ontario Teachers’.

Copyright © 2018 Transcontinental Media G.P. Originally published on benefitscanada.com

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