Megaport Launches Services in Europe
BRISBANE, Australia, July 29, 2016
Megaport Limited today announced that it had signed an agreement to acquire Germany’s second largest Internet Exchange operator PEERING GmbH which operates under the brand ECIX, based in Berlin, Germany. ECIX provides services to over 180 customers throughout its 30 points of presence within Germany.
Megaport CEO Denver Maddux said: “Europe represents a tremendous opportunity for Megaport and our acquisition of PEERING GmbH gives us depth within Germany, one of the largest economies in Europe where cloud services are forecast to grow significantly.”
Stefan Wahl, CEO of PEERING, GmbH said: “In terms of culture, capabilities, and neutrality, Megaport was the obvious choice to extend ECIX’s industry-changing services outside Germany. We are nimble which gives us the ability to deploy quickly and align our services to our customers’ needs.
“Megaport is the same and understands the importance of maintaining those values and capabilities while growing their business. The ECIX team are absolutely thrilled to join such a phenomenal company and team and are committed to supporting Megaport’s success in Europe,” Wahl said.
Megaport also announced the acquisition of OM-NIX, based in Sofia, Bulgaria. OM-NIX is a carrier-grade pan-European network services provider with access to key interconnection facilities throughout Europe. Combined, the acquisitions represent 48 European sites.
“OM-NIX has extensive reach into Eastern Europe and the Balkans region and, combining these acquisitions with the original Megaport build footprint, we now have extraordinary opportunity to extend our Elastic Interconnection across Europe,” Maddux said.
Yuliy Nushev, Founder of OM-NIX said: “It was immediately clear OM-NIX could play a big part in Megaport’s vision to bring Elastic Interconnection to Europe. Our unique footprint is an excellent complement to the core Megaport footprint and offers a great number of locations and ecosystem partners with which to connect.”
“This service footprint will provide all our existing customers and partners cloud connection and internet exchange capabilities via Megaport Virtual Cross Connect services (VXCs) as well as Internet Exchange services. The ECIX Internet Exchange service has become one of the top IX platforms in Europe. I could not be happier to welcome ECIX and OM-NIX to the Megaport family,” Maddux said.
Combined, the acquisitions of ECIX and OM-NIX represent 48 European sites.
These acquisitions coincide with Megaport today officially launching its elastic interconnection platform in Europe. As foreshadowed in the IPO prospectus of December, 2015 the Megaport Elastic Fabric is now available in nine sites throughout London, Dublin, Stockholm and Amsterdam with an additional four sites due to come online in the coming weeks.
Denver Maddux, Chief Executive Officer, Megaport Limited said: “I’m really pumped that we are formally launching services in Europe as well as announcing the acquisition of these two great companies that are accretive to our business and align with our values and culture. When you consider the market coverage each acquisition brings to our build they dovetail perfectly and leapfrog our initial plans for Europe. On completion of the transactions Europe will become Megaport’s largest market in terms of coverage and revenue. That’s pretty incredible.”
Details of Megaport’s European launch and acquisitions:
– Combined European footprint in 13 countries across 19 cities and 57 locations with these acquisitions representing 48 of those.
– Combined acquisition cost $3.1M AUD with combined estimated annualised revenue of $4.5M AUD and the acquisitions are earnings accretive
– Acquisitions are all cash consideration funded from current cash reserves
– Combined acquisitions bring 180+ customers
– Core PEERING GmbH leadership team will remain as managers of the combined operation
The sale and purchase is subject to customary conditions precedent and is anticipated to complete in early August.