TelecityGroup, headquartered in the United Kingdom, operates 39 data centers in key European cities. It has annual turnover of £349 million.
Interxion, which is based in Amsterdam, operates 39 data centres across 11 countries. It has annual turnover of £274 million.
The companies cited significant synergy potential. Incremental EBITDA from cost synergies and enhanced growth opportunities are estimated by TelecityGroup to be approximately £40m per year and capital expenditure synergies are estimated by TelecityGroup to have a net present value of approximately £300m. In total, this equates to a net present value of total synergies of approximately £600m.
John Hughes would be Chairman of the combined group, with John Baker as Deputy Chairman. David Ruberg would be appointed Chief Executive Officer of the combined group for a period of 12 months following completion of the transaction. He would lead the new, combined group and launch this exciting new phase for both TelecityGroup and Interxion. Eric Hageman would be appointed Chief Financial Officer. The board of the combined group would comprise a balance of independent non-executive directors from both TelecityGroup and Interxion.
Interxion Chairman John Baker said: “I believe that the combination of InterXion and Telecity represents an attractive value creation opportunity for our shareholders, with improved access to capital markets, reduced cost of capital and a strong balance sheet.”