Feeds

TelecityGroup swallows Data Electronics

Data centre provider coughs up £87.6m for rival

HP ProLiant Gen8: Integrated lifecycle automation

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. ®

Eight steps to building an HP BladeSystem

More from The Register

next story
10Gbps over crumbling COPPER: Boffins cram bits down telco wire
XG-FAST tech could finesse fiber connections
Amazon sues former employee who took Google cloud job
Alleges breach of non-compete clause in contract
THE GERMANS ARE CLOUDING: New AWS cloud region spotted
eu-central-1.amazonaws.com, aka, your new Amazon Frankfurt bitbarn
Airbus to send 1,200 TFlops of HPC goodness down the runway
HP scores deal to provide plane-maker with new fleet of data-crunching 'PODs'
Tegile boots Dell array out of chemical biz. Dell responds: Tegile, who?
Upstart says it's up, up and away ... but not on the giants' radar – yet
Dimension Data cloud goes TITSUP down under... after EMC storage fail
Replacement hardware needed as Australian cloud flops for 48-plus hours
IDC busts out new converged systems charts, crowns Oracle as Platform King
Nutanix/Simplivity not shown - but they're there. Oh yes
Microsoft thumbs nose at NSA, hardens crypto for Outlook, OneDrive
New server-side feature makes it harder for spies to snoop
X-IO offers emergency RACK IMPLANT treatment for moaning hosted VDI users
Hopes marketing fluffery will offer healthy sales
Remember the turbo button on PCs? New AWS instance has one for CPU burst
Yes, we know it slowed old kit - but not in Amazon's case
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
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.
The Power of One eBook: Top reasons to choose HP BladeSystem
Only the Power of One delivers leading infrastructure convergence, availability and scalability with federation, and agility through data center automation.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.