Megaport Makes Euro Move with Two Acquisitions and a Launch

The Australian interconnection upstart Megaport has long been planning to invade Europe this year.  Today they not only formally launched their elastic interconnection platform on the continent, but they revealed two acquisitions that let them hit the ground running in a big way.

Megaport has signed an agreement to buy Berlin-based Peering GmbH, Germany’s second largest IX provider.  ECIX serves some 180 customers across 30 PoPs in Germany, giving Megaport immediate depth in the continent’s biggest market.  The deal is expected to close in early August.

Megaport’s other M&A move gives them an immediate presence in eastern Europe via the acquisition of Bulgarian-based OM-NIX Group AD.  As one might infer from the IX part of their name, OM-NIX also specializes in interconnection, with extensive reach in Eastern Europe and especially the Balkans.  Beyond the ECIX footprint, the deal adds another 18 locations to Megaport’s reach in Europe.

Put those together with 9 other locations they have been developing organically, and Megaport’s European launch will span 57 locations in 19 cities in 13 countries.  The acquisitions cost them some AU$3.1M and bring in annualized revenue of AU$4.5M.

Over the past year, Megaport has expanded its interconnection footprint in markets throughout North America.  The buildout has been quite rapid, and the move into Europe accelerates it even further.  While the next phase is likely more adding revenue on top of the infrastructure they have built out, I have to wonder if they won’t keep going east.  It wouldn’t take much to add a PoP or two in the Middle East and India on their way back around the globe to Singapore and Australia.

 

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Categories: Interconnection · Mergers and Acquisitions