After reshuffling its ownership structure earlier this year, Interoute indicated an appetite for further acquisition. This morning they followed through with a significant deal. The pan-European network and cloud infrastructure company says it has entered an agreement to acquire the UK-based Easynet for £402M.
Easynet offers a wider spectrum of managed network and data services that has recently focused more and more on cloud connectivity and unified communications. By acquiring Easynet, Interoute will take on a significantly more managed services focus than we have seen so far. Interoute has blended deep fiber infrastructure with a data center and cloud ICT platform offering infrastructure-as-a-service to the enterprise. They have been leveraging that to add more managed services organically, but the purchase of Easynet will greatly accelerate that process.
All that will take some significant integration work of course, bringing the Interoute infrastructure to bear on Easynet's model. It will probably keep them busy for the next year or so, but rolling revenues onto the platform they've built over the years looks like something Interoute plans to do more of.
If complete, the deal will boost Interoute's annual revenues above €700M. We don't have a particularly recent revenue data point for Interoute, but they did €417M in 2013 and acquired Vtesse in a smaller deal since.