02/11/2005

Telecity acquires Redbus

Actually 3i who own Telecity aquired Redbus for 23p a share a 16.5% premium on the closing price valuing Redbus at £58.9m, a far cry from what Redbus was valued in the dotcom boom. This puts Redbus' share price at 23 times their EBITDA.

Telecity were running out of space and rather than building new facilities, just buy the competetion's space by buying them.

This is further evidence that the Internet/Telecoms market is still in majr consolidation mode which will continue for quite some time until there are a few big players left who can genuinely compete with each other.
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