British firm looks to Europe for growth
British network service provider Metronet has acquired Manchester-based infrastructure and hosting company M247 for £47.5m ($58m).
The combined business will own three data centers, employ more than 200 staff and have an EBITDA (earnings before interest, taxes, depreciation, and amortization) of over £12m ($14.6m).
View from the roof of Metronet headquarters, Manchester
Lee Perkins, Metronet CEO, said: “M247 is an excellent fit for us as it provides the scale and reach to build upon our existing momentum and the expertise and infrastructure to provide richer solutions to our combined customers.”
He added: “In addition to further acquisitions of similarly high quality businesses to M247, we are making significant investments in our systems and people to facilitate a smooth integration for our customers and to support further organic growth.”
Investor Livingbridge sees the acquisition as the beginning of a targeted buy and build strategy to create a “powerful transit network across Europe.”
Matthew Caffrey, partner at Livingbridge, said: “This is a fantastic step forward for Metronet (UK) as it continues to expand its footprint across the UK and eventually into Europe.
“This acquisition is the start of a journey to build an international, multi-offering Internet service provider and hosting business and we are delighted that M247 will be part of that process. Metronet (UK) has an exciting time ahead as it actively looks for similar acquisition opportunities and we look forward to seeing the business build on its success to date.”
Founded in 2000, M247 operates from Manchester, UK and Bucharest, Romania and has more than 50 employees.
David Buckle, managing director at M247, said: “We have known the Metronet (UK) team for some time and feel they are a perfect fit for our business. They are the ideal home for M247 and we are extremely excited about what the future holds for our combined businesses.”
M247 clients include travel retailer On the Beach and baking firm Warburtons.