NEWS
www.comms-dealer.com
Private equity deals in Interoute taps
tech sector rise 20% into Irish boom
THE number of UK private equity “This was thanks in large part INTEROUTE has extended
deals in the technology sector rose to stabilising business valuations its pan-European network into
by 20% in 2009 compared with resulting in a number of exits, Ireland to meet booming demand
2008, as consolidation fuelled a and revenues amongst technology for connectivity among large multi-
series of transactions, observes companies faring well despite the national enterprises.
Clearwater Corporate Finance. economic backdrop, prompting According to reports, the num-
The Wire, a half-yearly report investment activity.” ber of multi-national companies
on trends in technology mergers Carl Houghton, Partner and investing in Ireland rose by 11% in
and acquisitions (M&A), reported Head of Technology Sector at 2009, attracted by a well educated
39 private equity transactions in Clearwater, added: “Many tech- workforce with one of the top pro-
the sector last year, comprising 23 nology businesses that performed ductivity ratings in Europe and the
buyouts and 16 exits. Private equity well in 2009 will be viewed as low corporation tax rate on offer.
Emma Leathley
contributed 29% of the overall fre- virtually indestructible by private In 2009 Interoute’s orders for
Lee Myall
quency of technology deals in the 1st The Exchange, as the biggest equity acquirers, and are likely to connected sites in Ireland rose by our services in the region and this
year, an increase of 20%. technology deal of 2009. The larg- attract significant interest in 2010. 43% compared with 2008. extension of our network into
The second half of 2009 saw a est exit saw SaaS security specialist, “Businesses in the telecoms Lee Myall, UK Regional Ireland further strengthens our
notable increase in private equity Scan Safe, sold to Cisco by its ven- reseller, healthcare IT and IT ser- Director, said: “Ireland is an attrac- European footprint.”
houses exiting technology business- ture funders in a £112m deal. vices sub-sectors are likely to con- tive location for businesses. Not Interoute’s Dublin PoP is fully
es, as recovering company valua- Emma Leathley, Senior Tech- tinue to boost private equity deal only is it well known as a hub integrated into Interoute’s pan-
tions in the sector prompted sales. nology Analyst at Clearwater, said: flow with continued consolidation, for innovation and technological European network, providing busi-
There were 13 exits in that period, “Technology M&A began 2009 while businesses that emerge as development, but it also offers nesses with key managed services
representing a significant increase against the backdrop of an unprec- leaders in cloud computing will favourable financial incentives. such as IP connectivity, VPN ser-
on the three completed during the edented debt market and a ‘wait also be highly sought after. “Over the last 12 months we vices, managed hosting and unified
first six months of the year. and see’ sentiment stifling activity. “We envisage several decent- have seen increasing demand for communications solutions.
Clearwater’s report highlights However, technology held up well sized mid-market deals that, given
Lloyds Development Capital’s in comparison to other sectors, an improving economy, should set
£115m acquisition of a majority supported by the return of private the scene for a continuation of the
Quick costing up
stake in specialist software provider, equity as a major force. positive trends seen in 2009.”
TEMPEST is offering its resellers bandwidth multiplied by the dis-
a quick turnaround on costing for tance from the network.
Trust shakes on
Gamma’s high speed data access. “For every request we got, we
With Internet access available had to go back to the network and
on call for
from 2Mb to 100Mb, Tempest is ask for a bespoke price, which can
Fused alliance
offering its resellers instant access take anything from two days to
for Highnet
to a matrix of prices which will two weeks.
enable them to deal with customer “Being able to now provide a
MANCHESTER-based Trust Dis- SCOTTISH telecoms reseller requests fast. fixed matrix of costs makes it easier
tribution (under its Tru Networks Highnet has added mobile broad- Tempest’s MD, Rob Sims, said: for our resellers to provide a quote
banner) and the Fused Group have band to its product portfolio. “Providing instant pricing was dif- for their customers, which we are
forged a strategic partnership hav- Based on the Gamma Telecom ficult in the past as with traditional confident will make it easier for
ing identified a ‘naturally symbi- offering, Highnet has created three products it all depended on the them to win sales.”
otic’ fit. bundles – including a long-term
As of March 1st Trust will offer contract, a flexible rolling contract
resource from the Fused Group’s and a pay as you go option – to
New trade body
converged solutions portfolio, while take to the SME market through
Fused’s partners will be introduced its channel partners. A NEW ICT trade association has the key objectives that has driven
to Trust Distribution’s catalogue of Sales Director, Kim Moran- been launched promising inde- us for the last 17 years is to foster
voice and data products.
Mark Salvin
Hogg, commented: “This mobile pendent resellers from the digital co-operation between all the play-
Presented under a joint brand- in terms of age, size, values and broadband service is positioned to technology channels a platform for ers to the benefit of our members,
ing, each company will be able approach, and we both view the fill a gap in the market for business their views and the opportunity to our channel, and our end-user cus-
to offer a more rounded prod- convergence market as one worth grade mobile broadband at a com- share best practice through infor- tomers. It is what a proper trade
uct package with a best of breeds investing in.” Terry Ambrose, Trust petitive price. mal meetings. association does.”
approach. Distribution’s Joint MD, added “The in-built flexibility has The Reseller Forum is a joint Forum members who wish to
Mark Salvin, Fused’s COO, “We are delighted to open up a allowed us to create our own bun- initiative between the Technology work towards specific industry
commented: “We are exploiting wider range of products and servic- dles most suited to our Channel Channels Association and Comp- standard technical accreditations
each other’s knowledge base for es to all of our customers. Fused’s and their end users.” TIA. It is open to all resellers and may upgrade their membership
mutual and customer benefit. The portfolio fits the bill and broadens
Got a news story we all
there is no charge for membership. and join CompTIA at a rate that
products and services we jointly our portfolio. We are excited by the
should know about? email:
TCA President, Keith Warbur- offers savings, and may also join
offer are naturally symbiotic. potential opportunities that will
sgilroy@bpl-business.com
ton, said: “The 21st century needs the TCA and take advantage of the
“We are similar businesses open up for resellers.” to be about co-operation. One of member services.
8 COMMS DEALER MARCH 2010 www.comms-dealer.com
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