Decision Nº M/05/047 from Competition and Consumer Protection Commission, 2005-09-02

• Court: Competition and Consumer Protection Commission
• Decision Date: 02 September 2005
• Decision Number: M/05/047
• Date: 02 September 2005
• Parties: 3i,Oakhill

1

Determination No. M/05/047 of the Competition Authority, dated 2nd September

2005, under Section 21 of the Competition Act, 2002

Notification No. M/05/047 – Proposed acquisition by 3i Group and Oak Hill

Investors of TeleCity plc

Introduction

1. On 3rd August 2005 the Competition Authority, in accordance with Section 18 (1)

of the Competition Act, 2002 (“the Act”) was notified, on a mandatory basis, of a

proposal whereby 3i Group (“3i”) and Oak Hill Investors would acquire TeleCity

plc (“TeleCity”). It is proposed that 3i and Oak Hill would control TeleCity on a

50%/50% basis through a specially created company Inhoco.

The Parties

2. 3i is a venture capital and private equity investor. Its portfolio of companies

consists of businesses in a wide range of industry sectors and services, including

communication, engineering, food and healthcare. 3i currently holds a 44.85%

share in TeleCity.

3. Oak Hill Venture Partners (OHVP) invests in companies that are pioneering

innovative technologies and the businesses these technologies enable. It holds a

joint controlling interest in Gecis Global, which provides business process

outsourcing services and plans, designs and implements IT strategy and manages

the mission-critical IT infrastructure of global businesses. In Ireland Gecis

Global has a turnover of approximately €460,000.

4. TeleCity is an independent provider of data centre services in Europe. Through

its network of data centres TeleCity offers secure, controlled environments for

businesses who want to outsource all or part of the management of their technical

infrastructure. TeleCity operates nine data centre facilities in seven cities in

Europe including Dublin. In 2004 TeleCity generated a turnover in Ireland of c.

€2,165,000.

Analysis

5. Apart from its shareholding in TeleCity, 3i has no interests in any business

involving data centre services. None of the portfolio companies of Oak Hill carry

on any business activity on the island of Ireland which overlaps horizontally or

vertically with the business activities of TeleCity. The transaction does not

therefore give rise to competition concerns.