GTS Central Europe, a leading infrastructure-based telecommunications operator, provider of data center services in Central and Eastern Europe and the parent of GTS Hungary, has closed the acquisition of Interware and will spend €550,000 in the next 3 months on the expansion of the acquired data center in Victor Hugo utca, Budapest. The combination of Interware and existing GTS Hungary data center facilities aims to position GTS Hungary as leader in the Hungarian data center market.
GTS Central Europe signed the contract on the acquisition of 100% of Interware on June 10, 2010. The parties have not disclosed the details of the financial agreement. The transaction was completed on October 1, 2010 with the approval of the Hungarian Competition Authority.
Interware has an established history as an outstanding operator in the Hungarian alternative telecommunications market since 1998, offering server hosting, colocation, internet and fixed line telephone services primarily to business customers. The company operates two data centers in central Budapest, with a total area of 1,075 square meters.
Interware will be merged into GTS Hungary, creating a combined business with annual revenues exceeding €62 million and data centers having a total floor area of more than 1,600 square meters. The joint company employs 230.
GTS had revenues of €54 million in 2009 and €26.3 million in the first half of 2010.
In the Victor Hugo Street data center, which it has also acquired with the deal, GTS Hungary will add colocation space and increase the power supply. This investment is estimated to cost €550,000 and will provide incremental space and power for our customers.
GTS will also invest in its Budaörs base, totalling data center investment of €1 million in the next six months.
The acquisition of Interware is in line with the GTS group strategy for the Central European data center services market. Seeing the growing demand for data center services, the GTS group announced its expansion plans in March 2010; in the summer of 2010 it expanded its Polish data centers by 500 square meters and also opened a new 700 square meter facility in Prague, Czech Republic. In addition to the acquisition of the Hungarian Interware, recent GTS group acquisitions of Romanian operator Datek and Slovak operator Dial Telecom have also been important steps toward reaching the strategic objective.
GTS is also looking for further acquisition targets on the Hungarian market, mainly with data center or infrastructure operation profiles.
At present the GTS group operates a total of ten data centers in the Czech Republic, Slovakia, Poland, Hungary and Romania with an overall floor space of 8,000 square meters, servicing over 10,000 servers, which makes the Company one of the largest data center providers in the CEE region.
“We are strongly committed to continuous development in meeting our customers’ demand, and I’m convinced that they appreciate our ambitious efforts to become the leading provider of data center services in the region,” said Adam Sawicki, group CEO at GTS Central Europe. “With the Interware acquisition GTS group will further strengthen its position in the Hungarian and regional business telecommunications market,” he added. (BBJ)