Claranet hits high note with Star buy
Firms claim £55m acquisition will create European managed services behemoth
Claranet has gobbled up its rival Star Technology Services in an acquisition valued at £55m.
The deal, which was financed by RBS, Ares Capital Europe and a minority investment by Abry Partners, creates the largest mid-market provider of integrated hosting and network services in the UK and continental Europe, according to the two UK-based firms.
Set to operate under the Claranet brand, the company will boast revenues of more than £120m, with around 700 staff and 4,500 customers. It will also have operations in the UK, France, Germany, the Netherlands, Spain and Portugal.
Services offered by the combined entity will range from the datacentre to the desktop, with Star customers gaining access to Claranet's IaaS offering and managed application hosting services and its European reach.
In turn, Claranet's customers will gain Star's unified communications, remote desktop and security services expertise.
Charles Nasset, chief executive and founder of the Claranet Group, said: "From a market and customer perspective, this is a great opportunity to bring together the experience and resources of two great companies to deliver a broader service portfolio to benefit our customers.
"It's our mission to help our customers make the most of internet-enabled technology, and the acquisition of Star will enable us to continue to deliver on this promise."
He added that the deal fulfils his firm's ambition to become the European leader in managed services. "This is nothing short of a British entrepreneurial success story, as both companies were founded here in the UK."
Michel Robert, managing director of Claranet UK, added: "Star is a leader in providing managed services in the UK and therefore a natural fit for Claranet. Star has developed a strong base of customers, has a well-defined service portfolio, as well as a talented and dedicated team.
"It is this very success that makes Star such a logical fit for Claranet and, as part of our continued investment in evolving our services, is one that will directly benefit our customers," he said.