Advised IT-Ernity, a leading provider of managed services and shared hosting, on its recapitalisation and raising of growth capital from GMT and VSS
May 2013
acquired by
  • Sector: Cloud Managed Services
  • Deal Type: Strategic Deals; Private Equity Deals
  • Engagement type: Sellside
  • Size: <$200m

Arma Partners is pleased to announce that it has acted as exclusive financial advisor to IT-Ernity Internet Services BV on its sale by GMT Communications Partners, VSS and management to TransIP.

IT-Ernity is a provider of business critical managed cloud services for SMEs in the Netherlands.

The combination of IT-Ernity and TransIP, which are each leaders in their respective, highly complementary market segments, will create one of the largest cloud service providers in the Dutch market capable of serving all customer types and needs as their requirements scale.

The sale of IT-Ernity further reinforces Arma’s market leading position in the cloud services sector and highlights our ability to identify the best buyers and deliver very successful strategic transactions.

– Founded in 2002, IT-Ernity is a provider of business critical managed services and shared hosting for SMEs in the Netherlands

– Offers a comprehensive catalogue of standardised fully managed solutions, cloud, shared services and connectivity solutions

– Serves a diverse and growing customer base of over 40,000 customers, including a significant amount of cloud and managed services customers, primarily in the SME market

– GMT Communications Partners is a European independent private equity group focused exclusively on the media, information, entertainment and telecom industries

– Veronis Suhler Stevenson (VSS) is a private equity and debt capital fund management company dedicated to investing in the information, education, media, marketing and business services industries in North America and Europe

– The Netherlands is a highly attractive market for the delivery of internet services in Europe. Additionally, the regulatory environment is highly favourable with regards data storage and the energy network is one of the most reliable in Europe

– IT-Ernity presented GMT and VSS with a high quality platform to enter the Continental Europe managed hosting market, which is expected to experience significant growth and transformation over the next few years as the demand for IT infrastructures as a service increases

– With a view to leverage IT-Ernity as a regional consolidation platform, GMT and VSS are also very interested in the potential expansion strategy both within the Netherlands and internationally

– This investment gives IT-Ernity the financial and strategic resources required to take the company to the next stage of its development

– Arma contacted the most qualified strategic and financial buyers to determine interest in the business

– In parallel, Arma worked extensively with management to articulate the company’s growth strategy and corresponding financial plan

– Once GMT emerged as the most attractive bidder for the business, Arma, together with the management team, worked towards a very tight and compact timeline to complete the deal

– Overall, Arma Partners assisted the management and owners of IT-Ernity to realise their strategic objectives, drawing on Arma’s extensive experience in the European hosting space and global relationships with the most qualified buyers, including GMT and VSS