Equinix buys Spanish data centre Itconic for €215M

, , , , , ,
Integral service around a transaction
BY : Diego GutiérrezSeptember Tue, 2017
The Carlyle Group has sold Itconic, the largest provider of neutral data centre, connectivity and cloud infrastructure solutions in Spain and Portugal. The buyer was Equinix, Inc. a Nasdaq-listed company specialising in interconnection and data centre services. The purchase price amounted to €215M. The agreement was signed on 8 September 2017, and the acquisition is expected to be completed in the fourth quarter of 2017, subject to regulatory approvals.
About Itconic

Itconicformerly known as Telvent Global Services has three main lines of business: data centres, platforms and IT services. Within its data centre division, the company has become renowned for interconnecting its five data centres (4 in Spain and 1 in Lisbon), with the aim of offering greater agility and interconnection flexibility to its customers.

Also in the platform area, Itconic has carried out strategic actions, such as the purchase of CloudMas at the beginning of 2016. At that time the only premium cloud consultant for Amazon Web Services in Spain.

In 2015, Carlylewhich already had experience in the sector, bought Telvent for close to €22M from Schneider Electric. From this moment Itconic began a process of change - organisational, strategic and cultural - with two very clear objectives in mind: strategic focus and profitable growth.

Itconic corporate finance analysis

Itconic currently employs around 290 people. In 2016 it had a turnover of €47M and an EBITDA of €8.9M. Although they expect to reduce sales this year, they estimate their EBITDA to reach €14M, considerably improving their profitability ratio. From 2018 onwards, they expect double-digit growth in revenues and EBITDA.

Itconic, which has been in decline for a number of years, however, in the last year has managed to reduce its debt ratio (11.8 to 6.5) and improve its profitability considerably (9% to 19%).

Itconic Corporate finance Spain

Carlyle Group sells Itconic

One year after the acquisition, Carlyle has decided to sell Itconic to Equinix. Itconic will be able to strengthen its position in Europe and expand its presence in two new countries in the region. In addition, Equinix will benefit from the Itconic team's expertise in hybrid cloud architectures and cloud computing adoption and migration strategies.

As a result of this acquisition, Equinix will serve more than 400 customers in the Iberian Peninsula, including brands such as L' Oreal, Vueling, Deloitte, BNP Paribas, Repsol, Real Madrid, Randstad, Carlson Wagonlit Travel, Aon and Bank of America. In addition, Itconic operates more than 100 networking and mobility companies and more than 90 cloud and IT services companies, including Amazon Web Services (AWS), Microsoft Azure and Google Cloud.

The deal to acquire the Neutral Data Centre, Connectivity and Cloud Infrastructure business was sealed on 8 September and the acquisition is expected to close in the fourth quarter of 2017 subject to customary closing conditions, including regulatory approval.

Other posts that may interest you

Venture capital invests in BPOs to grow companies and increase their value.

GfI buys Spanish BPO specialist Efron Consulting

Konecta acquires Allus Global, Latin America's leading BPO provider

If you are looking for investors, you want to buy or selling a companyplease contact us. Abra-Invest has a team of experts in each area at your disposal. Call +34 946424142 or fill in the contact form.

The M&A Professionals

Meet our services



Do you want to be up to date?


Our diferentiation

Market Research Technology
Our team of market analysis specialists is continuously analyzing the investments of the most active markets in the industry in order to unceasingly contribute ideas of the current market situation and identify the most relevant trends for senior management. We integrate the most relevant sources of information which allows us to discover the most interesting companies for venture capital and similarly helps us to identify the investors with the highest probability of involvement in an M&A process to ensure the success of our sell-side operations.

The reports and deductions of our advisors provide a broad view of the sector, both geographically and from the complementary or adjacent markets perspective.
Technology Data Analytics
for M&A
Advanced data anlytics is a weapon". Intelfin is an artificial intelligence tool we use for investing and creating value in SMEs through competitive analytics and the enterprise environment.

IntelFin consists of a cognitive system, which, through the application of advanced analytical technologies, facilitates the automation of investment and financing decisions in the field of non-listed companies and especially SMEs in high-growth sectors.

The information related to these companies is characterized by their lack of transparency and heterogeneity; thus, it is necessary to develop an advanced analysis which is as much predictive as prescriptive and is developed in a natural language custom, suitable to obtain greater clarity and knowledge of the investment scope.

The IntelFin system focuses especially on analyzing the variables that define and influence the competitive environment of a sector and the positioning of a company, analyzing their influence on future value creation. Therefore, IntelFin supports strategic decision-making to senior management by resolving questions such as:

¿What are my competitors' priorities, strategies and expansion plans? Who's my competition? Which competitor is most likely to grow at a higher rate?
Which areas of activity/business models will receive the most investment? Which sectors are most attractive to investors?
Which companies are going to experience the most growth in the near future? Which companies are most likely to receive investment or be acquired?
Training Methodology
We have developed training programs in an innovative set-up which guarantees our teams the acquisition of technical competences both in the field of corporate finance and in the field of psychology, that is much needed when it comes to negotiation processes.

We have a culture of continuous improvement of our processes, closely related to the use of information systems that allow the enhancement of internal communication between our teams, as well as external communication with our customers. Hence, we extend best practices identified internally in an efficient and rapid manner among our members.

Are you one of those who prefer to be well informed when making decisions?