Business Cloud News
Claranet Group acquired cloud and application hosting firm Echiron as it eyes the mid-market

Claranet Group acquired cloud and application hosting firm Echiron as it eyes the mid-market

Managed service and cloud provider Claranet Group reported revenues of £103m, a 47 per cent increase on the previous year for 2013. Claranet chief executive officer and founder Charles Nasser said the company, which on Monday acquired managed hosting and cloud app service provider Echiron, plans to further position itself in the cloud space through strategic acquisitions and consolidation around the mid-market.

Claranet has traditionally offered managed services to large and mid-tier companies. But since 2012 the company has been looking to position itself as a heavyweight in the European cloud market.

In November 2012 it paid £55m for Star Technology Services, a mid-tier focused provider of integrated hosting and network services in the UK; a month later it paid £3.4m for French hosting company ad open source specialist Typhon, with much of 2013 spent integrating those two companies within the wider business.

On Monday, Claranet announced that it has acquired Echiron, a Portuguese high-end managed hosting, cloud and applications services provider, for an undisclosed sum.

“The acquisition is part of Claranet’s overall growth strategy and allows us to expand our teams and our service offerings,” said António Miguel Ferreira, managing director at Claranet Portugal.
“It confirms our ambition to become the leading independent provider of managed services in Europe, and now positions Claranet as the leading provider for managed hosting and managed applications in Portugal.”

Commenting on the company’s strategy over the past two years Nigel Fairhurst, chief financial officer of Claranet Group  said: “We have achieved what we set out to in these acquisitions, expanding the portfolio with a wider offering for customers, yet ensuring that we took advantage of synergies when bringing the businesses together.”

Charles Nasser said that the cloud sector will be a key component of the company moving forward, particularly as it seeks to continue targeting mid-tier companies – a path other cloud service providers have started down in the UK market.

“We are seeing a rapidly maturing cloud services market that is consolidating towards a smaller number of regional players at the mid-market level,” Nasser said. “Our strong growth last year was underpinned by the successful integration of our acquisitions into the business.”

“Our plans are ambitious and as we look ahead into 2014, we expect the year to be one of further rapid growth and expansion for us across our Western European market,” he added.