Australia’s Megaport expands to Europe
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Australian interconnection upstart Megaport has long been planning to invade Europe this year. Today they not only formally launched their elastic interconnection platform on the continent, but they revealed two acquisitions that let them hit the ground running in a big way.
Megaport has signed an agreement to buy Berlin-based Peering GmbH, Germany’s second largest IX provider. ECIX serves some 180 customers across 30 PoPs in Germany, giving Megaport immediate depth in the continent’s biggest market. The deal is expected to close in early August.
Megaport’s other M&A move gives them an immediate presence in eastern Europe via the acquisition of Bulgarian-based OM-NIX Group AD.
As one might infer from the IX part of their name, OM-NIX also specializes in interconnection, with extensive reach in Eastern Europe and especially the Balkans. Beyond the ECIX footprint, the deal adds another 18 locations to Megaport’s reach in Europe.
Put those together with 9 other locations they have been developing organically, and Megaport’s European launch will span 57 locations in 19 cities in 13 countries. The acquisitions cost them some A$3.1 million ($2.3 million) and bring in annualized revenue of A$4.5 million.
Over the past year, Megaport has expanded its interconnection footprint in markets throughout North America. The buildout has been quite rapid, and the move into Europe accelerates it even further.
While the next phase is likely more adding revenue on top of the infrastructure they have built out, I have to wonder if they won’t keep going east. It wouldn’t take much to add a PoP or two in the Middle East and India on their way back around the globe to Singapore and Australia.
Questions & Answers
Q.What is the primary purpose of Megaport's expansion into Europe?
What is the primary purpose of Megaport's expansion into Europe?
Megaport has launched its elastic interconnection platform on the continent. This expansion includes two acquisitions and organic growth, significantly increasing their network reach across Europe.
Q.Which companies did Megaport acquire as part of its European strategy?
Which companies did Megaport acquire as part of its European strategy?
Megaport acquired Berlin-based Peering GmbH, also known as ECIX, which is Germany’s second largest IX provider. They also bought Bulgarian-based OM-NIX Group AD, specialising in interconnection in Eastern Europe.
Q.How many European locations will Megaport operate initially after these acquisitions and organic development?
How many European locations will Megaport operate initially after these acquisitions and organic development?
Megaport’s European launch will span 57 locations in 19 cities across 13 countries. This includes the ECIX footprint, 18 additional locations from OM-NIX, and 9 locations developed organically.
Q.What was the total cost of the acquisitions and what annual revenue do they generate?
What was the total cost of the acquisitions and what annual revenue do they generate?
The acquisitions cost Megaport A$3.1 million ($2.3 million). These deals are expected to bring in an annualised revenue of A$4.5 million for the company.
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