Feeds

TelecityGroup swallows Data Electronics

Data centre provider coughs up £87.6m for rival

Intelligent flash storage arrays

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. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
'Kim Kardashian snaps naked selfies with a BLACKBERRY'. *Twitterati gasps*
More alleged private, nude celeb pics appear online
Wanna keep your data for 1,000 YEARS? No? Hard luck, HDS wants you to anyway
Combine Blu-ray and M-DISC and you get this monster
US boffins demo 'twisted radio' mux
OAM takes wireless signals to 32 Gbps
Google+ GOING, GOING ... ? Newbie Gmailers no longer forced into mandatory ID slurp
Mountain View distances itself from lame 'network thingy'
EMC, HP blockbuster 'merger' shocker comes a cropper
Stand down, FTC... you can put your feet up for a bit
Apple flops out 2FA for iCloud in bid to stop future nude selfie leaks
Millions of 4chan users howl with laughter as Cupertino slams stable door
Students playing with impressive racks? Yes, it's cluster comp time
The most comprehensive coverage the world has ever seen. Ever
Run little spreadsheet, run! IBM's Watson is coming to gobble you up
Big Blue's big super's big appetite for big data in big clouds for big analytics
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.