Feeds

Telecity in talks to acquires Data Electronics Group

One wannabe cloud biz chats up another

High performance access to file storage

Data centre provider TelecityGroup has confirmed it is chatting up Data Electronics Group (DEG) and that those flirtations could lead to an acquisition, reported to be valued at roughly £100m.

The discussions are at an early stage, but Telecity, which claims to be Europe's largest pusher of carrier-neutral data centres, is eyeing up cloud expansion and has the funding to buy and build.

"The Group confirms that it is in discussions with the shareholders of Data Electronics, which may or may not lead to an acquisition by TelecityGroup," the AIM-listed firm stated in a note to the market.

It added that the acquisition, if given the green light, would be funded out of the existing debt facilities held by the group.

Back in May, Telecity secured £100m of debt refinancing, taking its total credit facility to £300m, which it will use to "expand" the business in Europe.

For 2010, Telecity made an EBITDA of £83.4m, up 30 per cent on the same period 12 months earlier as sales grew 16 per cent to £196m. Pre-tax profits climbed more than 20 per cent to £45.9m.

Dublin-based DEG, which turned over €15.6m (£13.7m) in 2010, a rise of more than 10 per cent on the previous year, houses some 55 staff and serves customers including the Dublin Airport Authority.

Less than two months ago, it unveiled a virtual private cloud service, including physical infrastructure, hardware, licensing, operating systems, virtualisation, networking and data storage.

Cloud is often billed as the panacea for businesses looking to remove or severely cut back capital expenditure on IT, and Telecity is vying for a piece of this action.

The firms refused to comment further. ®

High performance access to file storage

More from The Register

next story
European Court of Justice rips up Data Retention Directive
Rules 'interfering' measure to be 'invalid'
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Cisco reps flog Whiptail's Invicta arrays against EMC and Pure
Storage reseller report reveals who's selling what
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Bored with trading oil and gold? Why not flog some CLOUD servers?
Chicago Mercantile Exchange plans cloud spot exchange
Just what could be inside Dropbox's new 'Home For Life'?
Biz apps, messaging, photos, email, more storage – sorry, did you think there would be cake?
IT bods: How long does it take YOU to train up on new tech?
I'll leave my arrays to do the hard work, if you don't mind
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.