TelecityGroup swallows Data Electronics
Data centre provider coughs up £87.6m for rival
TelecityGroup has splashed £87.6m in cash on Irish-based fellow co-location data centre provider Data Electronics in what promises to be the first of many acquisitions.
The firm, which also today outlined a bumper set of numbers for the six months ended 30 June, has a £300m war chest to fund further buys.
Commenting on the deal, which had been expected, Telecity CEO Michael Tobin said: "This brings growth potential in a location where we have for some time been capacity-constrained, and which many international companies view as their preferred entry point into Europe."
The buy gives Telecity another two data centres operating in Dublin – with a total of 4,600 square metres and 4MW of customer available power. Data Electronics made EBITDA of £6.3m before exceptional items in fiscal 2010, and £2.5m net profits on the back of £13m in sales.
Calendar half year financials for Telecity – which claims to be Europe's largest data centre provider with a 59 MW capacity – show a near-20 per cent rise in turnover to £112.2m, a 30.5 per cent hike in EBITDA to £49.4m and net profits of £30.2m.
Soaring demand for carrier-neutral data centre services fuelled the growth, particularly from system integrators providing web content or cloud services, Telecity said. The group now has 63 MW capacity after buying Data Electronics.
In a bid to keep pace with demand driven by the digital economy, the group will use acquisitions to cut a swathe in new markets or build incremental computing space as well as investing in additional capacity at existing sites. ®