Linx completes sale of its telecom activities to CITIC Telecom CPC

Telecommunications Holding BV (‘Linx’) has sold its telecom activities and will focus on expanding its Russian and Polish datacenter and cloud business.

  • When: 06 February 2017

The telecom activities known by the brand name ‘Linx Telecom’ have been sold to the CITIC Telecom CPC International Limited (‘CITIC Telecom CPC’), a company substantially owned by the Chinese conglomerate CITIC Group. The acquisition fits well into the recent strategy of the Chinese government known as ‘One Belt — One Road’. This program focuses on the investment and development of countries along the ‘Silk Road belt’. As a result of the acquisition of Linx Telecom, CITIC Telecom CPC’s network will connect Europe, Russia and Central Asia with their network in Asia and the rest of the world.

The sale successfully completes a major milestone in Linx’s business strategy, and enables further investment opportunities aimed at expanding its datacenter and cloud business in Russia and Poland. About 18 months ago, Linx took the decision to split the telecom and datacenter activities and started searching for a strategic buyer for the telecom part of the organization. M&A adviser Bankstreet from New York was asked to find a suitable buyer and to lead the sales process.

A range of potential buyers from Europe and from the Far East quickly showed interest. But from the beginning, there was an immediate chemistry with CITIC Telecom CPC: The network from CITIC Telecom CPC and Linx Telecom connected perfectly whilst the commercial and technical teams from Linx Telecom have an excellent opportunity to develop themselves further as part of CITIC Telecom CPC.

The benefit for Linx Datacenter is that through CITIC Telecom CPC, its datacenters will have direct access to China where Linx already has some customers. For example, the world’s largest web shop based in China uses the Linx Datacenter services in Russia.

Heiko H. Koop, Chief Executive Officer at Linx, explains: «When the sanctions from Europe and the USA started in 2014, the response from Russia was to intensify trade relationships with China and to implement Personal Data Protection laws. Both initiatives benefitted us very well. Currently Linx Datacenter is one of the top 5 commercial data center providers in Moscow and Saint Petersburg. Our focus is on international clients that do business in Russia».

«What really differentiates Linx Datacenter from its competitors is the personal approach towards its customers», continues Mr. Koop. «All of our employees are fluent in English — and some in other languages as well — which is exceptional in Russia. We help our international clients to understand- and be compliant with the specialized and highly regulated Russian legislation.»

Linx have continuously invested in its datacenters to increase capacity and reliability. For example, in 2015 the capacity of the Moscow Datacenter was doubled and in Saint Petersburg Linx Datacenter started the «Linx Lab’’ initiative. This enables young talents to be trained and value added services to be developed. Furthermore, the availability of highly educated technical personnel is very good in Saint Petersburg and Moscow.

About Linx Datacenter

Linx was established in 2000. The company has its headquarters in Amsterdam and operates state of the art Datacenters in Warsaw, Saint Petersburg and Moscow. The focus of Linx is to provide 100% safe, reliable and secure services to international clients who have businesses in Poland, Russia and elsewhere. The mid-term strategy of Linx is to extend the current services for Far East Clients operating in Russia and Poland and to be specialist provider in private Cloud solutions. Our motto is: «Securing your Business Growth».

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