Euro-bit-barn-operator-cum-cloud-hosting-provider Interoute is to wolf down pan-regional managed services outfit Easynet for £402m, including debts.
The transaction, which is subject to certain closing conditions, is all about cross-selling products and services to the firms’ respective bases of enterprise, public sector and service provider punters. Some cost cutting will likely help to massage the bottom line, too.
London-headquartered Interoute, majority owned by the Sandoz family, brought on board a couple of private equity houses in March to support an M&A drive after an existing investor sold a 30 per cent stake.
The blueprint is to double the size of the business in the next five years ahead of a planned flotation, and the buy of Easynet – easily Interoute’s biggest acquisition to date – is the first major step in that direction.
Clients using Interoute’s services – UC, computing and comms – include UEFA, the European Space Agency, and Saxo Bank, plus global telco operators and web content providers.
The last set of P&L accounts filed at Companies House show Easynet made EBITDA of £37.5m in the year ended November 2014, up 22 per cent on the prior fiscal. Sales were £221m, down 1.3 per cent.
Interoute said the combined operations would have turned over €700m in the 12 months ended 30 June 2015.
Mark Thompson, CEO of Easynet is expected to leave the organisation once integration is done and dusted. ®