Megaport has signed an agreement to acquire companies in Germany and Bulgaria, as the Australian interconnection provider widens its scope in Europe.
The double acquisition of PEERING GmbH and OM-NIX costs a combined $3.1 million, and represents a European footprint in 13 countries, across 19 cities and 57 locations, with both deals representing 48 of those.
With a combined estimated annualised revenue of $4.5 million, the acquisitions brings together over 180 customers.
In launching the company’s services on the continent, Megaport has signed an agreement to acquire Germany’s second largest Internet Exchange operator, PEERING GmbH.
Operating under the brand ECIX, the Berlin-based company provides services to over 180 customers throughout its 30 points of presence within Germany.
“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,” Megaport CEO, Denver Maddux, said.
For PEERING GmbH CEO, Stefan Wahl, in terms of culture, capabilities, and neutrality, Megaport was the “obvious choice” to extend the company’s services outside Germany.
“We are nimble which gives us the ability to deploy quickly and align our services to our customers’ needs,” Wahl said.
“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.”
In addition, Megaport also announced the acquisition of Sofia-based OM-NIX, a carrier-grade pan-European network services provider with access to key interconnection facilities throughout Europe.
“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 added.
OM-NIX founder, Yuliy Nushev, said it was “immediately clear” that the company 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,” Nushev added.
“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.
For Maddux, the acquisitions coincide with Megaport 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.
“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,” Maddux added.
“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, Maddux said Europe will become Megaport’s largest market in terms of coverage and revenue.