UK Grid sold to Telecity for £11.7m
UK Grid, the Manchester Science Park-based provider of Data Centres, has been bought by quoted technology company Telecity in an £11.7m deal.
The company, which was set up in 2004 by co-founders Rob Garbutt and Patrick Doyle, has enjoyed rapid growth in recent years and has specialised in the development of carbon-neutral co-location centres.
It was named as the nineth fastest-growing technology company in the UK by accountancy firm Deloitte last year and currently operates around 55,000 sq ft of data centre space in Manchester, as well as 20,000 sq ft in London.
Telecity is a London-headquartered technology company, which has its roots in Manchester. It has completed a number of large acquisitions in recent years, including the purchase of another Manchester-based data centre operator, Internet Facilitators Limited, in a £21.1m deal in August 2010.
Telecity said that the UK Grid acquisition provides it with a further 1.5MW of customer capacity in Manchester, with the potential for further expansion.
Michael Tobin, TelecityGroup’s chief executive, said: “I am delighted to welcome the UK Grid team to TelecityGroup. UK Grid enhances TelecityGroup’s growth platform in Manchester, which is an emerging technology hub with strong customer demand.”
The UKGrid team were advised on the sale by the Manchester office of accountancy firm CLB Coopers and law firm Pannone.
Stephen Lindsay, corporate finance partner at CLB Coopers said: “We are absolutely delighted to have worked with the UK Grid management team over recent years, culminating in this successful disposal.
“It shows the benefit of proper preparation of the business’ affairs leading the realisation of the value created by the owner/directors through their hard work in profitably growing the company.”
Pannone partner Philip Treanor said the acquisition was “a great deal for the guys at UK Grid” who had built a highly-rated business in Manchester.
He said the skills of Telecity’s young management team could also be put to god effect in helping Telecity to broaden its offer in London.
