TelecityGroup

TelecityGroup was a United Kingdom-based operator of carrier-neutral data centres and colocation facilities. The company designed, built and managed data-centre space used by telecommunications carriers, internet service providers, cloud and hosting companies, content businesses, financial institutions and other enterprises requiring secure, highly connected infrastructure. Its carrier-neutral model allowed customers to connect to multiple network providers rather than being tied to a single telecommunications carrier. The business originated with TeleCity Limited, founded in Manchester in April 1998 by Mike Kelly and Anish Kapoor, both associated with the University of Manchester. Its first facility opened in Manchester, with investment from 3i. A second major strand of the eventual group was Redbus Interhouse, incorporated in July 1998 and operational from a London Docklands data centre in 1999. Redbus floated on the London Stock Exchange in March 2000, while TeleCity’s parent company floated in June of the same year. TelecityGroup’s corporate structure was assembled through a series of ownership changes and acquisitions. TeleCity was taken private by 3i and Oak Hill in 2005. A new holding company, Telecity Group plc, was incorporated later that year and acquired Redbus Interhouse in January 2006. The combined operations initially traded as TelecityRedbus. Later in 2006, the group acquired the European assets of US-based Globix Corporation. TeleCity, Redbus and Globix’s UK operations were brought together under the TelecityGroup name after a rebranding programme in 2007, and the company returned to the main market of the London Stock Exchange in October that year. During the 2010s, TelecityGroup expanded its geographic footprint and power capacity through acquisitions and new construction. It bought Internet Facilitators in Manchester in 2010, Data Electronics in Dublin and UK Grid in Manchester in 2011, Tenue in Helsinki and Academica in Finland in 2012, SadeceHosting in Istanbul in 2013, and 3DC in Sofia later that year. The company also developed facilities in major European connectivity hubs including Amsterdam, London, Dublin, Frankfurt, Paris, Milan, Stockholm and Warsaw. At the end of 2011 it reported 68 MW of available customer power and planned to increase that figure to 124 MW by 2016. TelecityGroup became the subject of major merger activity in 2015. It agreed to combine with rival Interxion in a proposed transaction valued at approximately $2.2 billion, but Equinix subsequently announced a competing acquisition for £2.35 billion. The Equinix transaction received European Commission clearance in November 2015, subject to the divestment of eight data-centre sites on competition grounds. Those sites were sold to Digital Realty. Equinix completed its acquisition of TelecityGroup in January 2016 in a transaction valued at approximately $3.8 billion. TelecityGroup consequently ceased to operate as an independent listed company, and its facilities were integrated into Equinix’s European retail-colocation network.

TelecityGroup developed from the growth of carrier-neutral data-centre infrastructure in Europe during the late 1990s and early 2000s. TeleCity Limited was established in Manchester in April 1998 by Mike Kelly and Anish Kapoor, and opened its first data centre there. The company received a £24 million investment from 3i. In parallel, Redbus Interhouse Limited was incorporated in July 1998 and began operating its first London Docklands facility in July 1999. Redbus listed on the main market of the London Stock Exchange in March 2000, while TeleCity’s parent company floated in June of that year. The group’s modern corporate identity emerged after a private-equity-led restructuring. TeleCity plc was taken private by 3i and Oak Hill in September 2005. Telecity Group plc was incorporated in October 2005 and became the holding company of TeleCity and its related companies the following month. In January 2006 it acquired rival Redbus Interhouse plc. The businesses initially traded as TelecityRedbus. Later in 2006, the company acquired the European assets of Globix Corporation, adding further facilities and customers. In August 2007, TeleCity, Redbus and Globix’s UK operations were unified under the TelecityGroup brand. The company returned to the main market of the London Stock Exchange in October 2007. TelecityGroup pursued a combination of acquisition-led expansion and organic capacity development. It acquired Internet Facilitators in Manchester in 2010, followed by Data Electronics in Dublin and UK Grid in Manchester in 2011. In 2012 it expanded in Finland through Tenue and Academica. SadeceHosting, a Turkish provider of data-centre and hosted services, was acquired in May 2013, and Bulgarian operator 3DC was acquired in November 2013. These transactions broadened TelecityGroup’s presence beyond the United Kingdom into the principal European markets where internet traffic, telecommunications networks and enterprise demand were concentrated. Capacity investment was central to the company’s strategy. TelecityGroup reported 68 MW of available customer power at the end of 2011 and planned to reach 124 MW by 2016. New capacity included the first phase of a 9 MW Amsterdam facility, Southeast AMS 5, opened in early 2012, and the first phase of a 21 MW expansion at the London Powergate site, officially opened in July 2012. By the end of its independent life, the company operated 37 facilities in cities including London, Manchester, Amsterdam, Dublin, Frankfurt, Helsinki, Istanbul, Milan, Paris, Sofia, Stockholm and Warsaw. Management changes and strategic transactions shaped the company’s final period. Founder Michael Tobin left in August 2014 amid reported tensions with the board. In February 2015 TelecityGroup announced a proposed merger with Interxion, valued at approximately $2.2 billion. Before that transaction could close, Equinix announced a £2.35 billion acquisition offer in May 2015. European regulatory approval was granted in November 2015 subject to the sale of eight sites on competition grounds; Digital Realty acquired those divested facilities for a reported $874 million. Equinix completed its acquisition of TelecityGroup in January 2016, with the overall transaction reported at approximately $3.8 billion. TelecityGroup then ceased to exist as an independent listed company, while its remaining infrastructure became part of Equinix’s European retail-colocation platform.

• 2016

  Equinix completes acquisition

  [1]TelecityGroupen.wikipedia.org

  Equinix completed its acquisition of TelecityGroup, ending the brand’s independent corporate and listed-company status.

• 2015

  Equinix acquisition receives regulatory clearance

  [1]TelecityGroupen.wikipedia.org

  The European Commission cleared Equinix’s offer subject to divestiture of eight facilities.

• 2013

  Expansion into Turkey and Bulgaria

  [1]TelecityGroupen.wikipedia.org

  The company acquired SadeceHosting in Istanbul and 3DC in Sofia.

• 2012

  Amsterdam and London capacity projects open

  [1]TelecityGroupen.wikipedia.org

  TelecityGroup opened initial phases of new or expanded capacity at Southeast AMS 5 in Amsterdam and London Powergate.

• 2007

  TelecityGroup brand launched and company relisted

  [1]TelecityGroupen.wikipedia.org

  The TeleCity, Redbus and Globix UK operations adopted the TelecityGroup name, and the company listed on the London Stock Exchange’s main market.

• 2006

  Redbus and Globix assets join the group

  [1]TelecityGroupen.wikipedia.org

  Telecity Group acquired Redbus Interhouse and the European assets of Globix Corporation.

• 2005

  TeleCity taken private and new holding company formed

  [1]TelecityGroupen.wikipedia.org

  3i and Oak Hill acquired TeleCity, while Telecity Group plc was incorporated as the future group holding company.

• 1999

  Redbus begins operations in London

  [1]TelecityGroupen.wikipedia.org

  Redbus Interhouse commenced operations at its first data centre in London Docklands.

• 1998

  TeleCity Limited founded

  [1]TelecityGroupen.wikipedia.org

  Mike Kelly and Anish Kapoor founded TeleCity Limited in Manchester, and the company opened its first data centre.

A carrier-neutral European data-centre platform focused on secure colocation, network density, connectivity choice and scalable customer power.

• Data-centre services · 1998

  Carrier-neutral colocation

  TelecityGroup provided secure data-centre space, power, cooling and physical infrastructure for customers operating servers and networking equipment. Its carrier-neutral facilities supported access to multiple telecommunications and internet carriers, allowing customers to select connectivity providers and establish interconnections within major European markets.

• Connectivity services

  Interconnection and network connectivity

  The company’s facilities were positioned in dense connectivity locations and enabled customers to connect with carriers, internet service providers, hosting businesses and other networks. This network-rich environment was intended to support low-latency communications, internet traffic exchange and access to diverse providers.

• Managed IT services

  Managed and hosted infrastructure

  Through selected acquired businesses, including Globix-related operations, Academica and SadeceHosting, TelecityGroup also offered hosted services and related IT infrastructure capabilities alongside core colocation. These services complemented the physical data-centre platform and broadened the company’s relationship with hosting and enterprise customers.

• 2015

  Accept Equinix acquisition offerM&A

  Background

  TelecityGroup had announced a proposed combination with Interxion when Equinix made a competing offer valued at £2.35 billion.

  Action taken

  TelecityGroup proceeded with the Equinix transaction, replacing the proposed Interxion combination.

  Aftermath

  Regulatory approval required eight site divestitures, after which Equinix completed the acquisition in January 2016 and TelecityGroup ceased to operate independently.

  Reported transaction value. Approximately £2.35 billion offer; approximately $3.8 billion completion value reported (2015-2016)

  • Interxion — Interxion was the intended merger partner in the earlier proposed transaction, which was terminated or superseded after Equinix’s offer.
  • Digital Realty — Digital Realty acquired eight facilities divested as a condition of European regulatory clearance.

  Source

• 2012

  Accelerate European data-centre capacity expansionStrategy

  Background

  TelecityGroup was expanding in response to demand for carrier-neutral facilities and planned to increase available customer power from 68 MW at the end of 2011 to 124 MW by 2016.

  Action taken

  The company developed new and expanded sites, including Southeast AMS 5 in Amsterdam and the London Powergate expansion.

  Aftermath

  The programme supported the company’s broader European footprint, although the planned capacity target was overtaken by the later Equinix acquisition.

  Source

1. 1TelecityGroupen.wikipedia.org