Claranet, a London-based cloud hosting provider, has scooped up Star, a company that delivers managed technology services like unified communications, and advanced security services.

According to an official statement released on Star’s website, this acquisition has turned Claranet into the largest mid-tier provider of integrating hosting and networking services in Europe.

The local media views this as evidence of “cloud hosting consolidation;” Europe-based cloud companies like Claranet need to grow quickly, and bolster their range of services to compete with global cloud hosting giants like Amazon Web Services (AWS) and Rackspace.

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Related news: AWS recently announced that it would expand to its ninth region; it already has a strong footing in Europe with a data center in Ireland.

“This announcement confirms our ambition to become the clear European leader in the delivery of managed services,” said Claranet Group CEO, Charles Nasser. In a statement, Nasser termed this an “British entrepreneurial success story”, as both companies were founded in the UK.

The new business will incorporate an extended range of managed hosting and network services, Infrastructure-as-a-Service (IaaS) offerings, and virtual data centers.

Claranet claims that this new and expanded company will have revenues of over $150 million, about 700 staff, and over 4,500 customers, and operations will be expanded to the UK France, Germany, the Netherlands, Spain and Portugal.

In addition, new customers gained through the acquisition include Airbus, Amnesty International, Care UK, Channel 5, Veolia, Signet, CSH, IRIS, De Vere Hotels and Richmond Events.