Telecity in UK buys Data Electronics for [euro]100m

IRISH DATA centre provider Data Electronics has been acquired byUK-based rival Telecity for pound(s)87.6 million ([euro]100 million)in cash.

Data Electronics is one of Ireland's largest providers of data-centre services. It was founded in 1975 and has invested heavily inits two data centres near Dublin. It has recently completed a[euro]15 million expansion of an eco-friendly data centre in northDublin, which followed an initial [euro]25 million investment in2008.

The company employs 55 people and had sales of [euro]15.6 millionin 2010, up 11 per cent on the previous year.

The company is led by chief executive Maurice Mortell, who willbe staying with the business.

"This is an exciting development for Data Electronics," MrMortell said. "With greater combined resources, talent, technologyand infrastructure, we'll be able to deliver even more opportunityand value to our customers.

"Combining our business with Europe's leading provider of datacentres will be a great boost and will help us continue to build onour successful strategy of attracting both Irish and internationalbusinesses choosing to locate their digital infrastructure with ushere."

Telecity is one of the biggest players in Europe in the datacentre provider sector. The group operates 24 data centres acrossmain European cities, including one near Dublin. It has plans tonearly double its computing capacity. Revenues at the group rose 16per cent last year.

Mr Mortell said the deal demonstrated that the Irish IT marketwas "highly viable" and showed support for Dublin's position as acore European technology and internet hub.

Data Electronics operates two carrier-neutral data centres inDublin, with a combined capacity of 4,600 square metres and fourmegawatts of customer available power. These centres are keyinternational internet hubs and offer access to more than 40 carriernetworks as well as access to Inex, the Dublin internet exchange.

The company also has 1.5 megawatts of secured incrementalcustomer power with potential for further significant expansionwithin its existing sites. About 65 per cent of company revenuescome from international clients.

Mr Mortell told The Irish Times that the deal took between twoand three months to complete and that clients had respondedpositively to the announcement.

"There's some great synergies between the two organisations andthere is a very good fit between what we do and what Telecity doesacross Europe.

"The deal gives us ready access to cost capital for futureexpansion and growth," he added. "It also gives us access to theexpertise and skills that Telecity have in the organisation arounddata centre builds etc and it allows us access to internationalmarkets that we've had difficulty getting to in the past."

Telecity chief executive Michael Tobin said Data Electronics wasa successful Irish technology business with strong growth potential.

"There is significant local, national and international demandfor high quality, connected data-centre services in Ireland," headded.