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Claranet acquires Star in a deal valued at £55 million
This acquisition creates Europe's largest mid-tier provider of integrated hosting and network services
Claranet, one of Europe's leading managed service providers, has acquired Star, a UK provider of managed technology services. The acquisition creates the largest mid-market provider of integrated hosting and network services in the UK and continental Europe.
Claranet is acquiring STH Limited and its subsidiary, Star Technology Services, in a deal valued at £55 million. The trading entities will be maintained and will become wholly owned by Claranet Limited.
Charles Nasser, CEO and Founder of the Claranet Group, stated:
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.
"This announcement confirms our ambition to become the clear European leader in the delivery of managed services," he added. "This is nothing short of a British entrepreneurial success story, as both companies were founded here in the UK."
Operating under the Claranet brand, the expanded company will have revenues of over £120 million, circa 700 staff, over 4,500 customers, and operations in the UK, France, Germany, the Netherlands, Spain and Portugal. Claranet's customers will include Airbus, Amnesty International, Care UK, Channel 5, Veolia, Signet, CSH, IRIS, De Vere Hotels and Richmond Events.
The new business will have a service portfolio ranging from the data centre to the desktop. In addition to managed hosting and network services, which both companies provide to many customers, Star customers will be able to take advantage of Claranet's pan-European, award-winning Infrastructure-as-a-Service (IaaS) offering, Virtual Data Centre, as well as advanced managed application hosting services. Meanwhile, Star's strength in Unified Communications, remote desktop and advance security services will complement Claranet's existing portfolio.
In addition, Star's customers will be able to take advantage of Claranet's European operations and benefit from the knowledge that the enlarged company is on a strong financial footing, with far greater purchasing power in the market.
Michel Robert, MD 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 added.
Ben White, co-founder of Star and a partner at the cloud-focused venture investor Notion Capital, added:
The cultural and strategic compatibility of the two businesses is second to none and I am confident that the enlarged group will go on to even greater things, creating significant opportunities for customers, partners and staff."
The Royal Bank of Scotland (RBS), Ares Capital Europe and a minority investment by Abry Partners financed the acquisition.
Advisors on the transaction are Oakley Capital, acting for Claranet, and Ernst & Young, acting for Star.
Find out more:
- BizWire Express - Claranet acquires Star in a deal worth £55 million
- Brian Bollen’s Blog - Claranet acquires £55m Star
- Computer Business Review - Claranet buys Star for £55m
- CRN - Claranet hits high note with Star buy
- Channel Biz - Claranet buys Star in £55 million deal
- Cloud Computing - Claranet acquires Star in a deal valued at £55 million
- Cloud Computing Journal - Claranet acquires Star in deal valued at £55 million
- Cloud Pro - Claranet reaches for the Star with £55m acquisition
- Comms Dealer - Claranet aquires Star in £55 million deal
- Computer World UK - Claranet buys cloud desktop specialist Star
- Dot Net Developer's Journal - Claranet acquires Star in deal valued at £55 million
- IT Analysis - Claranet acquires Star in deal worth £55m
- IT Director - Claranet acquires Star in deal worth £55m
- IT News Online - Claranet acquires Star in deal worth £55m
- MicroScope - Claranet buys Star to build £120m MSP
- Mobility Tech Zone - Claranet acquires Star in deal worth £55m
- PE Hub - Claranet acquires Star
- PR Inside - Claranet acquires Star in deal worth £55m
- SYS-CON - Claranet acquires Star in deal worth £55m
- TechCrunch - Cloud hosting Consolidation In Europe: Star Sold To Claranet For $88M
- Telecompaper - Claranet buys managed technology services provider Star
- ZDNet - Claranet buys UK cloud-computing firm Star for £55m