The cash deal is said by Data Electronics to show that the Irish IT market is ‘highly viable’.
London-headquartered Telecity is a ‘carrier-neutral’ datacentre which designs, builds and manages secure environments for telecoms, internet and IT infrastructure.
Founded in 1998 as TeleCity, the business received initial investment of £24 million from 3i Group. The company then became Redbus Interhouse later in 1998 and floated on the London Stock Exchange in 2000.
Following a take-private deal of TeleCity by 3i and Oak Hill in 2005, Telecity group was incorporated and acquired rival business Interhouse in 2005.
It was not until 2007 that the businesses of TeleCity, Redbus and Globix began to trade under the name TelecityGroup.
Michael Tobin, chief executive officer of TelecityGroup, comments: ‘Data Electronics is a successful Irish technology business with strong growth potential and there is significant local, national and international demand for high quality, connected data centre services in Ireland.
‘The combination of Data Electronics and TelecityGroup creates a platform both to capture this demand and also to fulfill growth requirements of our existing customers in Dublin.’
Through its two data centres in Dublin, Data Electronics operates international internet hubs.
Chief executive officer of Data Electronics, Maurice Mortell, adds: ‘With greater combined resources, talent, technology and infrastructure we’ll be able to deliver even more opportunity and value to our customers.
‘Combining our business […] will be a great boost and will help us continue to build on our successful strategy of attracting both Irish and international businesses choosing to locate their digital infrastructure with us here.’
According to a statement, Mortell will remain with the business to lead the combined Irish operations.
For the six months ending 30 June 2011, TelecityGroup recorded revenues of £112.2 million (up 20 per cent on the first half of 2010), and profit before tax of £31 million (up 45 per cent on same period).
