Interoute is to on-board more scale, skills and new capabilities following its agreement to acquire European managed services provider Easynet. The transaction places an enterprise value of £402m on Easynet. On a pro forma basis, after giving effect to the acquisition, Interoute would have had total revenue of over €700m in the 12 months ended 30th June 2015.
The acquisition will expand Interoute's networked cloud and communications services to national and multinational enterprises across the world.
The deal will enable enterprise, Government and service provider customers of the merged group to access a full suite of the combined companies products and services.
In addition to increased products and services, the acquisition will bring an enhanced and expanded set of skills and capability to serve both companies' existing customers and new prospects across the world.
Interoute provides a range of unified connectivity, computing and communications products and services to multinational and national enterprises, such as UEFA, the European Space Agency, SCA and Saxo Bank, global telecommunications operators and Internet content providers.
The company was recently recognised as a Leader in Gartner's 2015 Magic Quadrant for Cloud-Enabled Managed Hosting, Europe1 report.
Gareth Williams, Interoute's CEO, commented: "It's the next step in our acquisition strategy and moves us much closer to our goal of being the provider of choice to Europe's digital economy."
Mark Thompson, CEO of Easynet, added: "I believe this acquisition will bring great benefits to both Interoute's and Easynet's customers.
"The combined companies can offer broader and deeper connectivity options, as well as an expanded portfolio of products and services, and the acquisition will further expand our cloud hosting capability in Europe."