Interxion Plans IPO on U.S. Markets

interxion

The exterior of an Interxion data center in Copenhagen.

European colocation and data center specialist Interxion has filed plans for an initial public offering with the U.S. Securities and Exchange Commission, the company said Monday. The company filed its paperwork "on a confidential basis," meaning the details are not public.

Interxion has been the focus of IPO rumors for several years. It is the third data center company to announce IPO plans this year, following the lead of interconnection specialist Telx Group and Malaysia's CSF Group. The Interxion offering is expected to take place in the second half of 2010, while the number of shares to be sold and the amount to be raised hasn't been determined.

26 Data Centers in 11 Countries
Interxion is based in Amsterdam and operates 26 carrier-neutral data centers in 13 cities and 11 European countries. The company offers colocation, wholesale data center services and managed hosting, giving customers a broad set of choices. Its competitors include Telecity and Equinix (IXEurope) on the colocation front and Digital Realty Trust, Global Switch and e-Shelter in the wholesale space.

In 2009, Interxion had revenues of €171.7 million ($226 million US), up 24 percent from €138.2 million in 2008. Adjusted EBITDA increased by 30% to €62.7 million and the company's net profit was €26.5 million ($35.1 million), compared to €37.4 million the previous year.

While London is the key market for several of its competitors, Interxion has five facilities each in Amsterdam and Frankfurt, and four data centers in Paris.

Raised Funds in February
In February Interxion raised €200 million (about $278 million U.S.) through a sale of notes, the company said Tuesday. The senior secured notes will be guaranteed by its wholly-owned subsidiaries, and the company plans to use the funds to "repay existing indebtedness and for general corporate purposes."

The timing of the Interxion IPO announcement is interesting. It comes several days after one of the company's key partners, Switch & Data, was acquired by Equinix, which competes with Interxion in the European colocation market.

The SEC has often allowed non-U.S. companies to submit IPO registrations for confidential review. Once an IPO has been completed, the company must make subsequent reports public.