German IT services provider q.beyond has sold its IP Exchange GmbH (IPX) colocation business for €44 million. The buyer, NorthC Group, is the largest provider of regional colocation services in the Netherlands.
Formerly known as QSC, q.beyond AG is a significant German managed service provider with over 1,000 employees. Since colocation is an investment-intensive business, it has not been part of its strategic focus for quite a while.
q.beyond has been considering different possibilities for its colocation business since spring. The company has announced that it plans to sell its colocation business operated through its subsidiary IP Exchange GmbH.
NorthC Group will acquire its two data centers in Nuremberg and Munich, Germany, with a total colocation space of 14,000 m2 and over seven megawatts of power capacity.
Jürgen Hermann, who serves the role of Chief Executive Officer (CEO) of q.beyond, had this to say:
This sale represents the ideal solution for all involved. q.beyond can now focus entirely on its core business of Cloud, SAP, and IoT while, together with NorthC Group, the team at IP Exchange can make optimal use of its strengths in the colocation market. This successful sale will enable us to reduce complexity, widen our scope for action and hone our positioning.
However, q.beyond is not selling its two data centers in Hamburg. It will keep them within its core business to further provide managed services and private cloud solutions to SMBs.
— q.beyond AG IR-News (@qbyiren) September 17, 2021
NorthC operates ten regional colocation data centers in the Netherlands, backed by German asset management giant DWS Group. With the latest acquisition, the company will expand outside the Netherlands for the first time, expanding its operation in the German market.
IPX is the perfect foundation to build a leading German regional network of data centers. It is located in southern Bavaria and uses a redundantly deployed network backbone to interconnect its data center. It provides colocation, connectivity, and managed services to various clients in the region. In turn, IPX’s colocation business has been generating annual revenues of around €20 million to date.
NorthC will open up a new German entity, NorthC Group Deutschland GmbH, to operate the acquired data center business.
Alexandra Schless, who serves the role of Chief Executive Officer (CEO) of NorthC Group, had this to say:
The acquisition of IPX is a major milestone in NorthC Group’s expansion strategy. We are pleased to welcome the IPX team to our organization. We believe that a platform of regional data centers with broad geographic reach allows our customers to optimize their redundant infrastructure and take advantage of regional ecosystems. This acquisition also enables NorthC to build on IPX’s managed services platform. Further synergy between the two companies will benefit both the combined company and our customers.
DWS and NorthC Group got ING as their financial advisor and Hogan Lovells as a legal advisor. Still, completing this acquisition is subject to customary conditions.