GTS acquires Sitel Data Center and establishes separate company - CE Colo - the largest player in the CEE data center market

Prague, January 25, 2011
GTS Central Europe, a leading infrastructure-based telecommunications operator and provider of data center services in Central and Eastern Europe (CEE), announces its acquisition of the Sitel Data Center (SDC). Sitel Data Center houses the largest peering point in the CEE region, is fit-out with 2,270 square meters (m2) of customer floor space and provides service to such clients as Tesco, Interoute and Mobilkom. In 2010, SDC’s revenues were €6.3 million.

“In accordance with our previously announced strategy in the data center sector, we are continuing to strengthen our position with the recent acquisition of Sitel Data Center. I am convinced that our clients appreciate our efforts to offer them complete regional solution as the largest provider of data center services in the CEE region,”commented GTS Group CEO, Adam Sawicki.  As a result of our data center division expanding so greatly over the past year, we have decided to dedicate this part of our business to a separate newly established company called CE Colo. This is the first and the only regional data center company in CEE, which solidifies our position as pioneer and leader in the regional telecommunication market.”  

SitelData Center is located in Prague 10 and has 2,270 m2 of customer floor space with an additional 700 m2 available for expansion. SDC services approximately 130 companies, among which include Tesco, Interoute, Mobilkom, Active 24 and Teleplan.  Sitel Data Center is also a crossroads for nearly all national and international data and Internet networks. SDC also provides the infrastructure for the 8th largest peering point in Europe, 55% of all Internet traffic in the Czech Republic passes through this facility. Furthermore, 145 route kilometers of optical fiber cables which connects numerous other key Points of Presence (POP) locations throughout Prague were acquired with the transaction.

“Thanks to the acquisition of the Sitel Data Center, we are the largest data center provider in the Czech Republic with a 35% share. Furthermore, last year’s acquisition of Interware positioned GTS/CE Colo as the leading carrier neutral data center services provider in the Hungarian market and strengthen our overall CEE offering,”said Jan Daan Luycks, CEO of CE Colo, a new member of the GTS family. “Gradually, all 14 GTS Group data centers will be transferred to CE Colo which is dedicated to building and managing data centers.”

The acquisition of Sitel Data Center is in line with the GTS Group’s strategy in this sector. In response to the growing demand for data center services in the CEE region, GTS announced in March 2010 plans for expansion. In the summer of 2010, GTS Polish data centers were expanded by 500 m2 and an additional 700 m2 data center was opened in Prague. At the same time, the Hungarian company Interware, a data center service provider with floor space of 1,075 m2, was purchased.  Also in 2010, GTS Group also acquired the Romanian operator Datek and the Slovakian operator Dial Telecom. 

CE Colo operates a total of 14 data centers in the Czech Republic, Hungary, Poland, Slovakia, and Romania. These offer an area of over 13,000 m2 of customer space for more than 2,000 customers.

About CE Colo:

CE Colo is a leading provider of data center services throughout Central and Eastern Europe.  CE Colo operates 14 facilities which span five countries - Czech Republic, Hungary, Poland, Slovakia and Romania.  Our data centers provide secure and connected environments where customers house and distribute mission-critical data, web content and media.  With over 13,000 square meters of customer space and 18 megawatts of power, CE Colo is focused on providing customers the data center infrastructure to grow their businesses throughout the CEE region. In Czech Republic, Hungary and Poland, the CE Colo facilities provide key interconnection points for the respective country’s communication infrastructure.    

CE Colo is part of the GTS Group which is owned by a consortium of private equity investors, led by Columbia Capital and M/C Venture Partners, US-based investors with extensive experience in the communications and technology-enabled services sectors, as well as Innova Capital, a leading private equity group focused on Central Europe.  HarbourVest Partners, Oak Investment Partners and Bessemer Venture Partners round out the Consortium.  More information is available at www.cecolo.com

About GTS

GTS Central Europe is a leading infrastructure-based provider of telecommunications services in Central and Eastern Europe. GTS owns and operates an extensive fiber optic and data center network throughout the region. In the Czech Republic, Hungary, Poland, Romania and Slovakia, the company combines its regional footprint with deep local networks to deliver a broad range of services. From basic voice and data to complex virtual private networks and managed data center services, GTS assembles the latest technology with its extensive network to provide industry-leading customer solutions. With a rich operating history of nearly 20 years in CEE, the company is committed to providing service excellence and value to its nearly 40,000 business, carrier and government customers. For more information, please visit us at www.gtsce.com

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