Network and cloud service operator Interoute has entered an agreement to buy European managed services provider Easynet in a deal valued at £402 million.
Easynet manages services for clients including Sports Direct, EDF, Bouygues, Anglian Water, Bridgestone, Levi Strauss and Campofrio Food Group. It has a twenty year pedigree of running integrated networks, hosting and unified communications solutions to national and global clients. Its data center and cloud computing services include colocation, security, voice and application performance management. It has been appointed by the UK government’s Procurement Service to assist the UK Government in creating a ‘network of networks’ with an emphasis on machine to machine (M2M) development.
Interoute’s technology estate includes 12 data centres, 14 virtual data centres and 31 colocation centres along with connection to 195 additional third-party data centres across Europe. It owns and operates 24 connected city networks within Europe’s major business centres.
According to Interoute, the acquisition means that enterprise, government and service provider customers of the two companies will get a fuller suite of products, services and skillsets.
“These are exciting times for Interoute customers,” said Interoute CEO Gareth Williams, “Interoute is creating a leading, independent European ICT provider. This is the next step in our acquisition strategy and moves us much closer to our goal of being the provider of choice to Europe’s digital economy.”
Easynet CEO Mark Thompson reassured customers that the combination of the two service providers will bring better service to clients of both. “The combined companies can offer broader and deeper connectivity options, as well as an expanded portfolio of products and services,” said Thompson. “The acquisition will expand an already market-leading cloud hosting capability in Europe.”
Williams had previously told analysts that Interoute needed to grow before going public. The takeover will double revenue in the division that sells telecoms services to large companies and government departments.
British telco Easynet became one of the champions of broadband competition in Britain after it was acquired in 2006 by Sky for £211 million. In 2010, Easynet announced its sale from BSkyB (Sky) to Lloyds Development Capital (LDC), the private equity arm of Lloyds Banking Group.
In December 2013 the company was acquired by MDNX Group, the UK’s largest independent carrier integrator.
Interoute buys Easynet for £402 million