26. September 2005
IXEurope secures EUR 32 million of funding to finance acquisition programme
IXEurope, Europe's fastest growing specialist datacenter services group with eight locations in the UK, France, Germany and Switzerland, has secured funds of EUR 32 million to support its ambitious and rapid growth programme.
In the six months to 30 June 2005 IXEurope's revenues grew by 47% to EUR 15.3 million, up from Euro 10.4 million. The Group had a compound annual revenue growth of 39% over the last three years to June 2005.
CIT Bank Limited will provide the Group with a structured debt package of EUR 20 million and a EUR 7 million bridge facility. In addition, the Group has agreed a further EUR 5 million funding from its two principal shareholders: European Acquisition Capital and Bank of America.
The Group has repaid its EUR 5 million loan facility with the Bank of Scotland. Guy Willner, Chief Executive Officer, IXEurope said
"During the last year, we have shown real and strong organic and acquisitive growth with monthly recurring revenue up by 35% to EUR 2.3 million and a continuously positive trend of underlying EBITDA growth, now in excess of 10% each quarter."
"Our strategy is to take advantage of the rapid changes and opportunities in the datacenter markets, particularly now that business continuity has become such a business critical issue."
"Having consolidated our position in four geographic markets, these funds will provide us with the resources to make a significant step up in our rate of growth by actively pursuing acquisitions. We are currently looking at a number of opportunities." Graham Randell, Managing Director, CIT Commercial Finance Europe, commented
"We are very pleased to be partnering with IXEurope. It has grown strongly and steadily since its inception and has proved its business plan and capabilities. We hope to develop this partnership in the future as the Group continues to grow."
Guy Willner, Chief Executive
Karen Bach, Finance Director
020 7533 6618
Adrian Duffield/Clare Warren
020 7457 2815/2055
Note to editors
IXEurope provides outsourced datacenter services and hosted solutions management in four countries UK, Germany, France and Switzerland through its network of datacenters.
As a specialist in datacenter services, IXEurope offers its customers access to flexible outsourced solutions while they maintain overall control of their projects. By continually focusing on quality, IXEurope gives clients cost effective access to expertise and exceptional service levels.
IXEurope delivers its services to systems integrators and IT consultants; hosting and managed service providers; and network service providers. Working in partnership with our solution providers, IXEurope datacenters house IT and networking systems for global enterprises, financial institutions, government agencies and ecommerce and midsized companies. IXEurope's backers include Bank of America Equity Partners and European Acquisition Capital. For more information please visit the website at www.ixeurope.com.
CIT Bank Limited is a wholly owned subsidiary of CIT Group Inc a Fortune 500 company, (NYSE: CIT), a leading commercial and consumer finance company. CIT Bank is a UKbased provider of leveraged and structured finance to the Private Equity Sponsor market and also infrastructure clients. CIT Group Inc, has approximately 6,000 employees in locations throughout North America, Europe, Latin and South America, and the Pacific Rim has nearly USD 60bn in assets under management. For further information, visit www.cit.com.
This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from expectations discussed in such forward-looking statements. Factors that might cause such differences include, but are not limited to, the challenges of acquiring, operating and constructing IBX centers and developing, deploying and delivering Equinix services; unanticipated costs or difficulties relating to the integration of IXEurope into Equinix; a failure to receive significant revenue from customers in recently built out data centers; failure to complete any financing arrangements contemplated from time to time; competition from existing and new competitors; the ability to generate sufficient cash flow or otherwise obtain funds to repay new or outstanding indebtedness; the loss or decline in business from our key customers; the results of any litigation relating to past stock option grants and practices; and other risks described from time to time in Equinix's filings with the Securities and Exchange Commission. In particular, see Equinix's recent quarterly and annual reports filed with the Securities and Exchange Commission, copies of which are available upon request from Equinix. Equinix does not assume any obligation to update the forward-looking information contained in this press release.
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