Data centre providers Telecity and Interxion are to merge in an all-share agreement, it was announced today.
Telecity said the deal would bring “complementary strengths to fulfil the expanding product, service and geographic needs of our customers”.
Combined, both firms now have a net value of £600 million. The firms cited demand for cloud services and data centres was the catalyst for the deal.
Interxion CEO David Ruberg said: “Bringing together the assets and solutions offered by
“Together, we expect to be able to further reduce our customers’ total cost of operation, help them deliver improved functionality to their customers, and deliver industry leading quality of service.”
Interxion currently operates 39 data centres in 11 countries, whilst Telecity operates its colocation services in 12 locations around Europe.
Interxion said that under the terms of the non-binding agreement, Interxion shareholders would receive 2.3386 new TelecityGroup shares per Interxion share. As a result, Interxion shareholders would own approximately 45%, and TelecityGroup shareholders approximately 55%, of the combined group.
TelecityGroup executive chairman John Hughes said: “We think that the combination of
“The transaction would truly transform both organisations and allow them to deliver a superior proposition to the joint customer base. In particular, we would like to thank David Ruberg for his key contribution in orchestrating this proposed transaction and we are delighted that he has agreed to launch the new combined group.”
Interxion also announced its Q4 results today for the three months and year ended 31 December 2014. Revenue for the fourth quarter and full year is expected to have increased by 15% and 11% to approximately £66.7 million and £252.7 million respectively.
Take our cloud quiz here!
After relocating from California to Texas in 2020, Oracle's Larry Ellison now reveals plan to…
Share price hit after Meta admits heavy AI spending plans, after posting strong first quarter…
For third time Google delays phase-out of third-party Chrome cookies after pushback from industry and…
Elon Musk firm touts cheaper EV models, as profits slump over 50 percent in the…
Bad news for Tim Cook, as Counterpoint records 19 percent fall in iPhone sales in…
TikTok pledges to challenge 'unconstitutional' US ban in the courts, after President Joe Biden signs…