21Vianet Scores Long-term Project With China Everbright Bank

Following its continued partnership with Alibaba, the Chinese IDC solutions provider made news again this week by striking another major deal.

Anthony Russo
    Jan 02, 2020 9:30 AM  PT
21Vianet Scores Long-term Project With China Everbright Bank
author: Anthony Russo   

21Vianet Group Inc. (Nasdaq: VNET) announced on Thursday it has won a bid to deliver and operate a production center via its data center (DC) solutions for China Everbright Bank Co. Ltd. (SSE: 601818; HKEX: 6818) in Beijing.

VNET said in a statement today that the first phase of the long-term project is expected to be completed in the first half of 2020. The first phase of the project has 3,000 square meters of floor space, according to the report.

The news sent 21Vianet's stock nearly 5% higher by midday, to $7.59 per American depositary share.

Earlier this week, 21Vianet signed an agreement to continue supplying its IDC solutions to Alibaba Holding Group Ltd. (NYSE: BABA; HKEX: 9988). Phase one of its deal with Alibaba is expected to be completed by the first half of 2020 and generate more than 600 million yuan of revenue, it said.

China Everbright, or CEB, which has headquarters in Beijing, operates 1,119 branches and outlets covering 115 economic center cities in 30 provinces, according to its website. In May 2019, the commercial bank ranked No. 151 on Forbes' list of the world's largest public companies. In its public offerings in Shanghai and Hong Kong, CEB has raised more than $6 billion.

"We are excited to expand our customer base in the financial industry, where industry players maintain a consistent desire for highly-secure and dependable IDC solutions," 21Vianet said in a statement today.

The company continued, "Our cooperation with such a sterling financial institution is not only a testament to our in-depth domain expertise and proven technology solutions, but also a milestone marking a significant breakthrough in the progression of our refined retail strategy."

Established in 2009, 21Vianet, in addition to its IDC solutions, provides cloud and business VPN services to enhance internet reliability, speed and security for its customers. In China, it operates in more than 30 cities and has a customer base of nearly 5,000, according to 21Vianet's official website.

For the three months through September, 21Vianet reported revenue of $137.2 million, up 13% year-over-year. Net loss has more than doubled to $9.3 million, or 6 cents per ADS, compared with $4.1 million, or 3 cents per ADS, in the same period last year.

Last month, 21Vianet launched a repurchase program under which the company intends to buy back $20 million of its ADSs.

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