Friday, January 28, 2011

Noise Filter: European Data Center Firm InterXion’s IPO

from (thanks for the quote):

>>There was quite a bit of coverage in the buildup to the initial public offering of European Data Center provider InterXion’s ( initial public offering. The company’s stock was set to start trading as INXN Friday on the New York Stock Exchange.


Seeking Alpha posted quite an exhaustive two-part examination of the company earlier in the week, written by Paolo Gorgo.

The first part examines the offering itself, and the competitive landscape for colocation in Europe, for the benefit of potential investors in North America.

“Interxion’s operations are all based in Europe and have been, so far, reported in the euro currency. Interxion’s proposed IPO on the NYSE will represent a unique opportunity for U.S. investors to access a leader in the fast growing European multi-tenant network neutral data center market, but may also raise questions about the company’s strategy in the North American market.”

The second part delves in greater detail into the company’s financials.

“It is interesting to note that about fifty-three percent of Interxion’s Monthly Recurring Revenue for the nine months ended September 30, 2010 was generated by contracts with terms of one year or less remaining. However, the company has, so far, experienced a very low churn of less than 2% per quarter, similar to its peers (Average Monthly Churn rate was 0.6% in the nine months ended September 30, 2010).”

INXN opened trading Friday up at $14.55.

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