Telekom Austria’s IT subsidiary has taken a stake in Exoscale, a Swiss cloud provider.

The undisclosed stake will allow A1 digital to offer cloud services through Exoscale’s platform.

It will launch an Exoscale access point in Vienna the coming months with a further location in Germany to follow.

The transaction gives Telekom Austria control of shares previously held by Swisscom, which the telco bought in 2016.

Financial details of the transaction were not disclosed.

Elisabetta Castiglioni, CEO of A1 digital, said the acquisition would serve the increasing number of companies that prefer domestic cloud providers.

She said taking over Exoscale would allow the provider to position itself as a “strong regional player operating under EU law”.

Exoscale co-founder and CEO Antoine Coetsier said the acquisition would allow the company to expand its position in Switzerland.

“A1 digital also shares our vision to combine purely cloud-hosting solutions with value-added services,” Coetsier said.

Stefan Kuentz, Investment Director at Swisscom Ventures, Swisscom's venture capital arm, said: "We have been very pleased by Exoscale's market execution and customer growth since our investment in 2015.

“To support the company's international expansion journey, we are glad to have found A1 digital as the new majority owner and partner that has the reach to unlock multiple new markets.”

Telekom Austria unveiled details of A1 digital in February, after announcing its formation eight months earlier. Based in Vienna, the unit aims to provide digital services such as IoT and cloud to SMEs across the eight European markets in which it operates.

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