Australian elastic interconnection services provider Megaport has signed an agreement to acquire Germany's second largest internet exchange operator, PEERING GmbH, which operates under the brand ECIX.
The ECIX acquisition will mark the second in the region, with Megaport also scooping up Bulgaria's carrier-grade pan-European network services provider, OM-NIX.
Combined, the acquisitions total AU$3.1 million and see the Australian-listed company's European footprint now span 13 countries across 19 cities and 57 locations.
"Europe represents a tremendous opportunity for Megaport and our acquisition of PEERING GmbH gives us depth within Germany, one of the largest economies in Europe where cloud services are forecast to grow significantly," Megaport CEO Denver Maddux said.
"OM-NIX has extensive reach into Eastern Europe and the Balkans region and, combining these acquisitions with the original Megaport build footprint, we now have extraordinary opportunity to extend our Elastic Interconnection across Europe."
Coinciding with its expanded presence in the region, Megaport officially launched its elastic interconnection platform in Europe on Friday. The Megaport Elastic Fabric will be available in nine sites throughout London, Dublin, Stockholm, and Amsterdam, with an additional four sites due to come online in the coming weeks, the company said.
Also on Friday, Megaport released its fourth quarter results, reporting a AU$3.4 million operating loss for the three months ended June 30, 2016, with net investing cash flow also AU$3.4 million in the red.
As of the end of June, Megaport held AU$11.8 million in cash and its total monthly recurring revenue at the end of the quarter was AU$308,000, a 12 percent increase year-on-year.
In February, Megaport reported a AU$9.9 million loss on revenue of AU$1,001,079 for the six months ended December 2015, with the net loss incurred as a result of the company continuing the roll out of its services worldwide.
In what was a busy day for Megaport, the company also announced on Friday it had undertaken a private placement of 10.5 million fully paid ordinary shares to raise AU$17.85 million and is planning to offer additional shares to existing shareholders.
Maddux said the cash will be used to fund its elastic interconnection platform expansion throughout Europe, APAC, and North America, as well as to use it towards staffing and marketing costs, and general working capital requirements.
Megaport began trading on the Australian Securities Exchange (ASX) in mid-December after a successful Initial Public Offering (IPO) that saw it raise AU$25 million to be primarily used to expand services across the US and Europe.