TelecityRedbus to buy Globix UK

Datacentre hosting firm TelecityRedbus plans to expand its London presence with a £33m deal

TelecityRedbus is to acquire Globix UK in a move that extends its network of communications, datacentre co-location and managed service capabilities, most notably in London.

The £33m deal is expected to close in three weeks providing TelecityRedbus with an expanded footprint including two more London datacentres and extended network coverage in Paris, Amsterdam and Frankfurt. The resulting company will have over 300 staff, 19 datacentres in seven European countries, and a projected turnover of over £76m.

“The acquisition will enable new and existing customers to take advantage of one of Europe’s most advanced datacentre networks,” said Mike Tobin, CEO of TelecityRedbus. “Few other players can claim such an advanced portfolio of high-tech datacentres, internet infrastructure and managed services.”

TelecityRedbus was formed in January by the combination of TeleCity and Redbus Interhouse, and the combined firm has been open about its continuing acquisitive strategy. The challenges of mounting enterprise power and connectivity needs together with constrained availability of infrastructure equipment are making datacentre hosting firms more popular and consolidation more likely, experts say.

The current demand for co-location capabilities is in sharp contrast to the dot-com-bubble aftermath that saw many datacentres underutilised and which led to a glut in network connectivity. In May, TelecityRedbus said it planned to add 6,000 square feet to its datacentre in London’s Docklands area.