UK-based data centre operator Interoute has agreed to acquire managed services provider Easynet for an enterprise value of £402m (US$618m), subject to customary closing conditions. The deal is Interoute’s first since..
UK-based data centre operator Interoute has agreed to acquire managed services provider Easynet for an enterprise value of £402m (US$618m), subject to customary closing conditions. The deal is Interoute’s first since new minority shareholders Crestview Partners and Aleph Capital Partners came on board in April, with a view to backing European fibre and cloud consolidation opportunities.
Interoute was advised by Barclays Capital, Mayer Brown and KPMG (tax and due diligence), it is understood. Easynet carried out the sale in-house.
This is the third time Easynet has changed hands since 2010, when LDC acquired it for £100m from BSkyB. The Lloyds-owned private equity group sold it in 2013 to MDNX Group for an undisclosed price, retaining a minority stake in the combined group alongside MDNX management, with another private equity firm, Equistone, holding a majority stake. That deal did not include Easynet’s German managed hosting business, Nexinto, which became independent.
Describing the combined company as “a leading, independent European ICT provider”, Interoute CEO Gareth Williams said the purchase represented “the next step in our acquisition strategy”.
Assuming the acquisition completes, Interoute’s pro forma revenue for the full year ended 30 June is €700m, the company stated.
Easynet CEO Mark Thompson said the deal would “further expand an already market-leading cloud hosting capability in Europe”.
According to the two companies, the deal will enable the merged group to better serve its enterprise, government and service provider customers.
Interoute owns and operates 12 data centres, 31 co-location centres and 67,000km of lit fibre. Its largest shareholder is the Switzerland-based Sandoz Family Foundation, while former minority owner EIT in April sold its 30% stake in the business to Aleph Capital Partners and Crestview Partners. At that time, Interoute anticipated that the new investors would enable it to “make more acquisitions and build its business in the UK, USA and across Europe, with a view to targeting €1bn in revenue.
Brian Cassidy, a partner at Crestview Partners, said “We see a lot of consolidation opportunities in the fibre and cloud markets in Europe, which Interoute should participate in.”
A spokesperson for Interoute declined to provide further details on the deal, saying they would remain private until completion, expected in the coming weeks.
