TeleCityRedbus Adds Through Acquisition

• By theWHIR.com , August 25, 2006

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TeleCityRedbus Expands Through AcquisitionBy Justin Lee, theWhir.com

August 25, 2006 -- (WEB HOST INDUSTRY REVIEW) -- The European hosting market continues its consolidation with larger hosting providers, ISPs and telcos setting their sights on smaller companies in an effort to expand their service portfolios and market share.

Among the leaders in this trend is colocation and data center services provider TelecityRedbus (telecityredbus.com), which recently announced it would acquire managed services provider Globix's (globix.com) subsidiary, Globix UK.

TelecityRedbus will pay £33 million for Globix UK and its associated pan-European network, which extends to the core business hubs of Paris, Amsterdam and Frankfurt.

The colocation provider is no stranger to high profile acquisitions. Last November, Telecity made headlines when it announced it would buy rival Redbus Interhouse. Since then, the combined company has been actively building its service portfolio and pursuing new markets in the European area.

"We have a leadership position, not only in terms of market share and everything else, but more importantly in the way we drive the industry," says Mike Tobin, TelecityRedbus CEO. "We are aggressive in terms of where we think the pricing position should be, and what people should be receiving in terms of service levels."

Through the deal, TelecityRedbus will gain two high-specification data centers, totaling 40,000 square feet, in central London, an Internet network infrastructure, a comprehensive portfolio of managed services and Globix's technical and management specialist team.

The attractive combination of valuable assets was the deciding factor in TelecityRedbus acquiring Globix. The colocation provider hopes the acquisition will further consolidate its position as one of Europe's most advanced hosting and managed data center service providers.

"Probably 30 percent of [Globix UK?s] business is managed services and connectivity services, whereas probably 75 percent of TelecityRedbus is colocation services," says Tobin. "Taking that expertise of selling managed service solutions for their customer base and applying that with our customer base will act as a catalyst to drive services throughout the market."

When the acquisition is fully completed roughly three weeks, TelecityRedbus will have more than 300 employees supporting 19 fully fitted data centers, totaling 550,000 square feet, across seven European countries, making it one of Europe?s largest and most advanced data center infrastructure and managed service providers.

TelecityRedbus says the Globix deal has positioned the company for further success, and projects a combined turnover of at least £76 million for 2006.

"We see ourselves opportunistic in terms of our acquisition opportunities wherever there happens to be a good, viable business in the right market," says Tobin. "There are only a handfull of key markets we?re excited about in Europe - anything in Amsterdam, Paris and London ? if we can identify opportunities in those markets then we?ll be going for them."

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