Interoute has entered into an agreement to acquire European managed services provider Easynet for £402m.
The network provider – a global vendor of connectivity, computing and communications products and services – said that after "giving effect" to the acquisition, total revenues for the year ending 30 June 2015 would be more than €700m (£508m).
A statement on Interoute's website claimed customers of both companies, which includes enterprises, government and service providers, will be able to take advantage of a combined set of products such as cloud and communications services, along with the combined skill sets of both firms.
The deal is subject to customary closing conditions.
Gareth Williams, Interoute's chief executive, commented: "These are exciting times for Interoute and our customers as we create a leading, independent European ICT provider.
"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."
Interoute added that Easynet would be subject to certain customary closing conditions. These are a set of conditions that both companies must adhere to prior to the acquisition being closed. Failing to do so would give the other firm the right to refuse closure of the deal.
Easynet’s CEO, Gareth Thompson, concluded: "I believe this acquisition will bring great benefits to both Interoute's and Easynet's customers.
"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."
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