Categories: CloudDatacentre

Interxion And Telecity Announce Data Centre Merger

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”.

Cloud demand

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 Interxion and Telecity will improve our customers’ ability to realise the benefits of transitioning to the cloud.

“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 shareholders to own 45 percent

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 TelecityGroup and Interxion would represent an extremely compelling combination for all stakeholders of both companies.

“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!

Ben Sullivan

Ben covers web and technology giants such as Google, Amazon, and Microsoft and their impact on the cloud computing industry, whilst also writing about data centre players and their increasing importance in Europe. He also covers future technologies such as drones, aerospace, science, and the effect of technology on the environment.

Recent Posts

Google Ordered To Pay $43m By Australian Court

Search engine Google fined $43 million by Australian court for tracking Android users location data…

2 days ago

Hacker Touts Data Sale Of 48.5m Users Of Covid App – Report

Personal data of 48.5 million Chinese citizens who used Shanghai's Covid App, is being offered…

2 days ago

Facebook Tests Default End-to-End Encryption For Messenger

Privacy move. Platform tests secure storage of people's chats on Messenger, in a move sure…

2 days ago

UK’s CMA Begins Probe Of Viasat Acquisition Of Inmarsat

British competition regulator the CMA, begins phase one investigation of $7.3 billion merger between Inmarsat…

3 days ago

Cisco Admits ‘Security Incident’ After Breach Of Corporate Network

Yanluowang ransomware hackers claim credit for compromise of Cisco's corporate network in May, while Cisco…

3 days ago

Google Seeks To Shame Apple Over RCS Refusal

Good luck convincing Tim. Google begins publicity campaign to pressure Aple into adopting the cross…

3 days ago