TelecityGroup acquires Data Electronics in €101m deal

EUROPE’s largest data centre provider, TelecityGroup, has acquired one of the leading players in the Irish market — Data Electronics — for £87.6 million (€101m) in cash.

The deal will see the Irish firm eventually re-branded as Telecity Ireland and will significantly enhance the London-based group’s presence in Ireland, which has existed since 2001.

Telecity chief executive Michael Tobin emphasised the value of a strong Irish operation for the British company, by saying the deal offers it growth potential “in a location where we have, for some time, been capacity constrained and which many international companies view as their preferred entry point into Europe.”

“It also establishes Telecity as the market leader in Ireland,” he added.

Data Electronics’ chief executive Maurice Mortell — who will remain at the helm of the new-look entity (all Data’s existing 55 staff members will also remain) — called the move “an exciting development” for the Irish company; adding that it will enhance its resources and capability and enable it to grow its clientele further.

“Combining our business with Europe’s leading provider of data centres will be a great boost and will help us to continue to build on our successful strategy of attracting both Irish and international businesses choosing to locate their digital infrastructure here.”

“This deal demonstrates that the Irish IT market is highly visible and shows support for Dublin’s position as a core European technology and Internet hub; presenting a significant opportunity for the combined group,” he added.

Telecity operates 26 data centres across Europe and has the likes of London Transport and Facebook amongst its clientele.

Data Electronics, which was established in 1975, runs two data centres in Dublin and has a clientele which includes the likes of Yahoo! and the Dublin Airport Authority (DAA).