Cloud and datacentre M&A heats up as international investors target Europe

International companies and investors are setting their sights on the European cloud and datacentre market, with robust M&A and investment activity expected to continue, according to industry experts speaking at TMT Finance World Congress 2017, the annual leadership event for leading telecom, media and technology companies across the globe.

As Asian and US-based players look to expand outside of home markets and into Europe, and the industry continues to converge, increasing cross-border expansion, and cross selling opportunities will be up for grabs, commented Olivier Wolf, Partner and TMT TAS Leader, EY.

“There continues to be a significant amount of M&A activity in the enterprise cloud and datacentre space across Europe and we expect that to continue to accelerate in this exciting space for TMT M&A”, he said. “New hybrid cloud-business models are developing, which offer more cross selling opportunities, and the benefits of gaining geographical scale are increasing.

“Pan-European leaders are starting to emerge and large US and Asian businesses are also targeting more deals in Europe, while opportunities for private equity investors to build significant sellable assets continues,” Wolf added.

One senior TMT investment banker added: “The market [in the US] is very competitive and becoming more consolidated, so London is looking more attractive for deals”, while recognising Frankfurt as one of the fastest growing datacentre markets in Europe.

International interest in the European DC space has been reflected in recent deals, such as Singaporean DC operator Keppel’s recent acquisition of the B10 Data Centre in Ireland and the ongoing sale of UK DC Zenium Technology Partners, with US firm CyrusOne believed to be leading the bidding process, and the company having secured a new debt package. Hosting has also seen an uptick in transactions this year, including the E397m sale of PlusServer to BC Partners, and Equinix’s move for cloud infrastructure provider Itconic for E215m.

Cloud hosting and datacentres investment is one of the key topics at TMT Finance World Congress 2017, with key datacentre and cloud companies represented at the event including:  OVH, GoDaddy, Data 4, Claranet, SuperNAP, Warburg Pincus and Cinven. Over 100 speakers have been announced in total. For the full speaker list go to http://www.tmtfinance.com/world/speakers

For more information, go to www.tmtfinance.com/world

To register, go to http://www.tmtfinance.com/world/register/

 

TMT Finance Asia 2018


TMT Finance Africa Cape Town 2018

 

TMT M&A Forum 2018