Feeds

Telecity in talks to acquires Data Electronics Group

One wannabe cloud biz chats up another

Maximizing your infrastructure through virtualization

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. ®

The Power of One eBook: Top reasons to choose HP BladeSystem

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
SHOCK and AWS: The fall of Amazon's deflationary cloud
Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
The triumph of VVOL: Everyone's jumping into bed with VMware
'Bandwagon'? Yes, we're on it and so what, say big dogs
Carbon tax repeal won't see data centre operators cut prices
Rackspace says electricity isn't a major cost, Equinix promises 'no levy'
Disaster Recovery upstart joins DR 'as a service' gang
Quorum joins the aaS crowd with DRaaS offering
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.