TelecityGroup Buys Ireland's Data Electronics

European provider of carrier-neutral data centres TelecityGroup announced it has acquired Data Electronics Group Limited, Ireland’s leading provider of highly connected carrier-neutral data centres, for £87.6 million ($143.5 million) in cash.

Data Electronics operates two carrier-neutral data centres in Dublin, with a combined capacity of 4,600 square metres and 4MW of customer available power. The facilities offer access to over 40 carrier networks and access to INEX, the Dublin internet exchange. Data Electronics also has 1.5MW of secured incremental customer power with potential for further significant expansion within its existing sites.

“Data Electronics is a successful Irish technology business with strong growth potential and there is significant local, national and international demand for high quality, connected data centre services in Ireland," said Michael Tobin, CEO of TelecityGroup. "The combination of Data Electronics and TelecityGroup creates a platform both to capture this demand and also to fulfil growth requirements of our existing customers in Dublin.”

Maurice Mortell, CEO of Data Electronics said, he is staying with the business and will lead the combined Irish operations.

London-listed Telecity operates 26 data centres across Europe and has plans to nearly double its computing capacity to 116MW, funded by a £300m credit facility, according to a report in the Financial Times.

Telecity also reported its financial results Monday, saying that it delivered strong growth in the first half of 2011 and confirming its positive outlook for the full year. Its revenue up was 19.8% to £112.2 million, with a 30% increase in EBITDA to £49.4 million. Also, adjusted pre-tax profit rose up 44.6% to £31 million.