Mergers & Acquisitions

Mergers & Acquisitions

August 01, 2011

euNetworks Announces Acquisition of Germany-Based TeraGate

euNetworks, a subsidiary of euNetworks Group Ltd., has executed and completed a definitive agreement to acquire Germany based TeraGate AG Storage Optical Network (TeraGate), a company of DB Industrial Holdings Beteiligungs & Co. KG, a subsidiary of Deutsche Bank, and of EGORA Holding.

The company said this latest acquisition is a natural addition to the Group following the LambdaNet acquisition, with an enterprise customer base predominantly served in the German market.

“The acquisition of TeraGate was a natural next step for us following the LambdaNet acquisition as we continue to develop our German business,” said Brady Rafuse, CEO at euNetworks, in a release.

Rafuse said TeraGate’s product set is complementary to euNetworks’ and there is clear value to be created from leveraging the euNetworks and LambdaNet backbones and metropolitan networks for TeraGate service delivery going forward.

TeraGate is a service provider for next generation Corporate WAN in Germany with a high-end customer base and a market leading value proposition. It offers both national and international solutions to medium and large enterprises.

The company’s product portfolio is based on intelligent Ethernet and efficient data center and cloud services. It operates in Germany, headquartered in Munich, with technical headquarters in Frankfurt.

“TeraGate has a great customer base that predominantly purchase multiple services across seven of the existing euNetworks metropolitan markets in Germany,” Rafuse said.

Leveraging euNetworks’ legacy metropolitan footprint, the company expects to be able to bring over 50 buildings on-net, eliminating network expense, Rafuse said, adding that LambdaNet’s Pan German footprint and operations are expected to provide further synergies.

Jürgen Hansjosten, CEO at TeraGate, believes that this transaction will provide greater service options across a wider geography for TeraGate’s customers. “The network footprint and portfolio now available to our customers will continue to strengthen the trusted relationships we have in place today.”

Recently, Euronext’s SFTI Access Centres named euNetworks Group Limited as a supplier of connectivity to it, expecting to win more business from controversial high-frequency trading firms.

Anshu Shrivastava is a contributing editor for TMCnet. To read more of Anshu’s articles, please visit her columnist page.

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