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Claranet
Oakley advises Claranet on the acquisition of Star
Completed Transactions - Claranet Logo
Sector:
Hosting & Datacentres
Transaction Type:
Acquisition
Date:
November 2012
Deal Value:
£55m

Oakley Capital Corporate Finance (“Oakley”) has advised Claranet Group (“Claranet”) on its acquisition of STHLimited, the parent company of Star Technology Services Limited (“Star”), in a deal valued at £55 million. The acquisition creates one of the leading mid-market providers of integrated hosting and network services in the UK and Continental Europe.

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.” Operating under the Claranet brand, the enlarged group will have revenues of over £120 million, circa 700 staff and over 4,500 customers with operations in the UK, France, Germany, Netherlands, Spain and Portugal.”

Oakley was hired by Claranet to advise on the acquisition of Star and the raising of finance to fund the acquisition. Oakley worked with Claranet to review a range of potential equity and debt funding options. The optimum structure to fund the acquisition incorporated debt funding from The Royal Bank of Scotland and Ares Capital Europe and a minority investment by Abry Partners.

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 Claranet and Star provide to many customers, Star customers will be able to take advantage of Claranet’s pan-European award-wining Infrastructure-as-a-Service (IaaS) offering, Virtual Data Centre, as well as advanced managed application hosting services. Star’s strength in Unified Communications, remote desktop and advance security services will complement Claranet’s existing portfolio. The combination of the two groups is also expected to generate significant synergies.

This transaction continues Oakley’s active involvement in the hosting and network services market, where there continues to be a significant number of transactions and strong level of interest from potential buyers. The Oakley team was led by Chris Brooks, Chris Godsmark and Maria Candelario.

Chris Brooks said,

“We were very pleased to have assisted Charles and the Claranet team on this transformatory transaction, which firmly establishes Claranet as one of the UK’s leading providers of hosting and network services. We wish the enlarged business and management team well on the successful alignment of the two businesses and further development of its comprehensive service portfolio in the mid-market.”

 

For further information please contact:
Chris Godsmark,Partner
Chris Brooks, Managing Director
+44 207 766 6900

*Completed by Oakley Capital Corporate Finance

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