UK data hosting rivals merge

Summary:Redbus is looking to cut staff, as well as improve operating practices, after absorbing TeleCity

Redbus Interhouse and TeleCity, two of the largest UK hosting companies, have agreed to merge.

Redbus, a colocation and managed service provider, has had a cash offer accepted for Telecity. Together, the companies will have a turnover of around £45m and be worth around £110m.

"There will be some job losses, but not many," said Mike Tobin, chief executive of Redbus, who will become chief executive of the combined company. Most of the senior staff will also come from Redbus.

Tobin said it was "excellent news for shareholders, employees and customers”, and will give the new company greater leverage with suppliers.

Redbus customers certainly deserve a boost from the company. Earlier this year, Redbus suffered performance problems and claims for compensation from users whose kit was destroyed by a power spike. Some problems took up to 27 hours to repair.

Topics: Tech Industry

About

Colin has been a computer journalist for some 30 years having started in the business the same year that the IBM PC was launched, although the first piece he wrote was about computer audit. He was at one time editor of Computing magazine in London and prior to that held a number of editing jobs, including time spent at the late DEC Compu... Full Bio

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