German IT services provider q.beyond has sold its IP Exchange colocation business to NorthC.
q.beyond has sold the wholly-owned subsidiary for around €44 million ($51.5m) to NorthC Group Deutschland GmbH, the German unit of the Dutch data center operator.
With the deal, NorthC Group expands into the German market while q.beyond exits its colocation business in Munich and Nuremberg.
NorthC is acquiring two data centers in Nuremberg and Munich with 14,000 sqm (150,600 sq ft) and more than 7MW of power capacity. The company said the facilities had further expansion opportunities.
Alexandra Schless, CEO of NorthC, said: “The acquisition of IPX is a key milestone in NorthC Group’s expansion strategy. We are pleased to welcome the IPX team into our organization. We believe that a platform of regional data centers on a wider geographical scope provides our customers the ability to optimize their redundant infrastructure and benefit from regional ecosystems.“
q.beyond’s data centers at its Hamburg location will remain part of the core business.
“This sale represents the ideal solution for all involved,” said Jürgen Hermann, q.beyond CEO, who noted that the company will now focus on its core business of cloud, SAP and IoT. “This successful sale will enable us to reduce complexity, widen our scope for action and hone our positioning,” he added.
In June, q.beyond said it was considering divesting its colocation business – which at the time operated three data centers in Munich and Nuremberg – saying that colocation “offered few synergies” with its core business and the extra liquidity would further increase its leeway for future acquisitions. In August, the company sold one of its Nuremberg data centers to financial software firm and longtime customer DATEV.
“Colocation, an investment-intensive business, has not formed part of q.beyond’s strategic focus for some time now,” the company said in this week’s announcement.