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MEGAPORT (ASX: MP1) will acquire Germany's second largest internet exchange operator and another provider in Bulgaria, as it officially launches in Europe.
After a one-day trading halt to transact documents, Megaport released the news to the ASX.
The elastic interconnectivity provider has purchased Berlin-based PEERING GmbH, which operates under the brand ECIX.
Megaport CEO Denver Maddux says the move is reflective of 'tremendous opportunity' in Europe, where it officially launched operations today.
"Europe represents a tremendous opportunity for Megaport and our acquisition of PEERING GmbH gives us depth within Germany, one of the largest economies in Europe where cloud services are forecast to grow significantly," says Maddux.
PEERING GmbH services over 180 customers through 30 points of presence within Germany.
Stefan Wahl, CEO of PEERING, says Megaport's culture, capabilities and neutrality got his company over the line.
His company will remain as managers of the combined operation.
"In terms of culture, capabilities, and neutrality, Megaport was the obvious choice to extend ECIX's industry-changing services outside Germany. We are nimble which gives us the ability to deploy quickly and align our services to our customers' needs," says Wahl.
Megaport also today announced the acquisition of OM-NIX, based in Sofia, Bulgaria.
OM-NIX is a carrier-grade pan-European network services provider with access to key interconnection facilities throughout Europe.
Combined, the Germany and Bulgaria acquisitions represent 48 European sites.
The combined acquisition costs are AU$3.1 million with combined estimated annualised revenue of AU$4.5 million and the acquisitions are earnings accretive. The acquisitions are expected to be finalised in early August, subject to customary conditions.
"When you consider the market coverage each acquisition brings to our build they dovetail perfectly and leapfrog our initial plans for Europe. On completion of the transactions Europe will become Megaport's largest market in terms of coverage and revenue. That's pretty incredible," says Maddux.
The Megaport Elastic Fabric is now available in nine sites throughout London, Dublin, Stockholm and Amsterdam with an additional four sites due to come online in the coming weeks.
More Megaport:
- Megaport placed in trading halt for European expansion
- CEO Denver Maddux discusses the promise of Megaport's partnerships
- Megaport's initial plans to list on the ASX
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