TelecityGroup-Interxion merger to challenge Equinix in retail colocation market

The merger between TelecityGroup and Interxion can take on Equinix and become the leader in the retail colocation market in the EMEA region, said Synergy Research Group.

“The transaction would truly transform both organizations and allow them to deliver a superior proposition to the joint customer base,” said TelecityGroup chairman John Hughes in a statement.

In August, Telecity CEO Michael Tobin had stepped down unexpectedly.

The merger between Telecity and Interxion can lead to £340 million in annual synergies and will immediately increase their presence across Europe.

Amsterdam-based Interxion has 39 data centers in 11 western European countries and had 2014 sales of €340.6 million or $385.4 million, an 11 percent increase over 2013.

Based on Q3 2014 data the merged TelecityGroup / Interxion would have a 15 percent share of the EMEA retail colocation market and Equinix 9 percent. Currently TelecityGroup and Interxion are in a close fight for second placed position in the EMEA market.

The merged entity would be the market leader in the UK and the Netherlands, the number two ranked operator in Spain and Switzerland, the number three ranked operator in Germany and France and the leader in the smaller country markets, said Synergy Research Group.

EMEA Colocation Market

While US-headquartered Equinix has a global footprint with many data centers in North America, Latin America and the APAC region in addition to EMEA, TelecityGroup and Interxion both maintain a tight focus on the EMEA region.

In addition to the six largest EMEA markets mentioned previously, the two European operators also have data centers and a substantial market share in countries such as Sweden, Ireland, Austria, Belgium, Denmark, Italy and Finland. Currently the EMEA region accounts for 33 percent of the worldwide retail colocation market.

“The retail colocation market continues to grow at around 10 percent per year, boosted by trends in big data, cloud services, outsourcing and video / social networking,” said John Dinsdale, chief analyst and research director at Synergy Research Group.

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