UK-based telecoms provider Colt has announced plans to acquire Japanese data centre provider KVH for Y18.595bn (US$161.3m).
Colt said the acquisition provides it with a platform to enter the growing APAC ICT market, and will deliver annual cost and…
UK-based telecoms provider Colt has announced plans to acquire Japanese data centre provider KVH for Y18.595bn (US$161.3m).
Colt said the acquisition provides it with a platform to enter the growing APAC ICT market, and will deliver annual cost and capex synergies of €8.5m (US$10.6m) by 2017.
“They have strong capabilities, a significant customer base and great assets, all complementary to our own,” said Colt CEO Rakesh Bhasin.
“This partnership will enable Colt to offer our customers seamless solutions on a global basis and give us a solid platform for growth in Asia.”
Colt will fund the deal through cash on its balance sheet and tapping a €150m (US$187m) three-year revolver that has an option to be extended for an additional two years. The group said it is also evaluating whether to raise longer term debt.
It has hired Morgan Stanley for financial advice on the transaction.
KVH was founded in 1999 by Fidelity, a US financial services firm, and is about 10% the size of Colt in revenue terms. It posted €133.6m (US$167m) in sales for 2013.
Colt was founded in 1992 through funds provided by Fidelity.
In October, Mark Ferrari stepped down as CFO of Colt to head back to Fidelity after completing his secondment.