Interoute has agreed to acquire Easynet in a deal that values the U.K.-based managed services provider at £402 million (€552 million).
Easynet is a logical acquisition for pan-European network and cloud services platform provider Interoute.
The merged company will be able to offer a full suite of products and services to its enterprise, government and serv ice provider customers, Interoute explained in a statement on Tuesday.
"I believe this acquisition will bring great benefits to both Interoute’s and Easynet’s customers," said Easynet chief executive Mark Thompson.
"The combined companies can offer broader and deeper connectivity options, as well as an expanded portfolio of products and services, and the acquisition will further expand an already market-leading cloud hosting capability in Europe," he added.
Interoute said that including Easynet it would have generated revenues in excess of €700 million in the year to the end of June.
The companies did not disclose further details of the deal, nor did they state when they expect it to close.
For Interoute, the deal forms part of recently-announced acquisition plan.
"It’s the next step in our acquisition strategy and moves us much closer to our goal of being the provider of choice to Europe’s digital economy," said Interoute CEO Gareth Williams.
Earlier this year the operator welcomed new investors Aleph Capital Partners and Crestview Partners, who ploughed money into the company in return for a 30% stake.
At the time Interoute said their backing would enable it to "make more acquisitions and business in the U.K., U.S.A., and across Europe."
"Interoute seeks to more than double its revenues in the next five years, underpinned by demand for its enterprise networked cloud services," Williams said in March. "Adding new markets, capabilities and additional customers to experience these services will be the focus of the acquisitions."
