European independent metro fiber operator euNetworks (SIN:H23, news) isn't messing around with its efforts to attack the German market. Today they announced their second acquisition in three months with the purchase of TeraGate AG Storage Optical Network. TeraGate offers nextgen corporate WAN solutions, including Ethernet products and cloud-based storage networks. They operate both nationally and internationally, but their primary focus lies in Germany across seven major metropolitan areas. Financial terms were not disclosed.
Those metros overlap with euNetworks' footprint, and euNetworks expects to be able to bring more than 50 buildings on-net as part of the integration. Additional synergies are expected with the assets of LambdaNet, which euNetworks acquired in May and is busy integrating into the business as a whole. The combined assets and customer bases of the three companies will make euNetworks a substantial force in Germany with a focus on both the wholesale and large enterprise markets. Just last week we learned that Vodafone Group (NYSE:VOD, news, filings) has selected the company to provide the fiber underlying their LTE rollout in the country.
While they surely have integration work ahead of them, I expect that euNetworks has its eye on other assets that will help fill out other parts of its footprint, perhaps in the Netherlands for instance, or south into Switzerland, etc. They are looking more and more like a younger European incarnation of Zayo, making an independent move on European network assets that aren't yet getting the respect they deserve.