* Becomes market leader in Ireland with 87.6 mln stg deal
* H1 revenue up 20 pct to 112.2 mln stg
* H1 adj profit before tax up 45 pct to 31.0 mln stg
* Shares up 3.6 pct
(Adds CEO comments, analyst reaction, shares)
By Paul Sandle
LONDON, Aug 8 British data-centre operator
Telecity on Monday said it had bought Dublin-based Data
Electronics Group for 87.6 million pounds ($143.5 million)
making it the market leader in Ireland.
Chief Executive Michael Tobin said the company, which owns
and operates data centres in European business hubs like London
and Amsterdam, was looking for similar deals to Data Electronics
which added 4MW of customer power.
It plans to almost double available capacity to 116MW, most
of which would be achieved in the next four years.
"We are talking to number of people and they may or may not
come to fruition," Tobin said in an interview.
Its carrier-neutral data centres have connections to all the
major telecoms networks and offer a premium service to
"We are always on the lookout for the right deal for
shareholders," he said.
The group expanded its debt facility by 100 million pounds
to 300 million pounds ahead of buying Data Electronics.
Telecity announced the Irish deal as it revealed a 45
percent jump in adjusted pretax profit to 31.0 million pounds
for the first half on 20 percent higher revenue of 112.2 million
"Our biggest growth areas are still the content and
connectivity relationships, where you see the drivers from the
Internet in social media, content distribution through video
downloads and mobile applications," he said.
Tobin said the company was also starting to see some pick-up
in cloud services, data applications located on remote servers
and accessed over the Web. "We don't provide the cloud services
ourselves but we are the location of choice for cloud enablers,"
Shares in Telecity, which competes with Equinix and
Interxion , were 2.5 percent higher at 499.3 pence by
0822 GMT, outperforming a 0.3 percent lower index of mid-sized
Analysts at Barclays Capital said the first-half results
were in line with its expectations and showed positive momentum
in the business.
"This is a stock and a sector that appears to defy the
apparent wider economic slowdown," they said in a note.
"During the financial crisis of 2008/09, Telecity delivered
record growth. This momentum has continued in 2010/11, further
evidenced by the 1H11 results, and we see no reason not to be
optimistic for the next three years."
($1 = 0.610 British Pounds)