Increasing demand for cloud technology has led British data centre provider Telecity to look to expand into the sector with a non-binding offer of £1.44bn to buyout New York-listed Interxion sending shares in Telecity up 15.26 per cent on the news.
Telecity has benefited from the increased use of its data centres from cloud based services as the use of smartphones and tablets grows.
The company believes there will be significant synergy potential from the acquisition as well as enhanced growth opportunities to be worth approximately £40m per year as well as savings on capital expenditure of approximately £300m.
Under the terms of the non-binding deal Telecity shareholders would own close to 55 per cent, and Interxion shareholders close to 45 per cent, of the combined group.
The primary listing for the combined firm would be in London.