UK Business ISP Claranet Gobbles Managed Provider Star for GBP55m

Business internet and telecoms provider Claranet UK has acquired STH Limited and its managed technology services subsidiary, Star (Star Technology Services), for the sizeable sum of £55 million.

The expanded company, which will continue to use the Claranet brand, is expected to have revenues of over £120 million, circa 700 staff, more than 4,500 customers and operations in the UK, France, Germany, the Netherlands, Spain and Portugal.

Charles Nasser, CEO and Founder of the Claranet Group, said:

“From a market and customer perspective, this is a great opportunity to bring together the experience and resources of two great companies to deliver a broader service portfolio to benefit our customers. It’s our mission to help our customers make the most of internet-enabled technology, and the acquisition of Star will enable us to continue to deliver on this promise.

This announcement confirms our ambition to become the clear European leader in the delivery of managed services,” he added. “This is nothing short of a British entrepreneurial success story, as both companies were founded here in the UK.”

It’s understood that the Royal Bank of Scotland (RBS), Ares Capital Europe and a minority investment by Abry Partners financed the acquisition. Claranet also has a moderate population of home broadband customers through its SOHO division.

Claranet’s bigger customers now include Airbus, Amnesty International, Care UK, Channel 5, Veolia, Signet, CSH, IRIS, De Vere Hotels and Richmond Events.