Tag Archives: Telecom

GIP and KKR-led Consortium Enters Into Strategic Co-control Partnership With Vodafone to Invest in Vantage Towers AG

KKR

Two of the world’s leading infrastructure investors and Vodafone team up to jointly transform Vantage Towers into a leading player in the European telecoms tower sector

  • The Consortium, as partner to Vodafone, will co-control Vodafone’s c. 81.7% stake in Vantage Towers and launch a public takeover offer to the minority shareholders of the company for the remaining c. 18.3%
  • GIP and KKR together with Vodafone intend to provide the deep infrastructure expertise needed to accelerate Vantage Towers’ strategic and operational development
  • The strategic partners intend to support an ongoing multibillion euro investment program over the next five years in order to improve Vantage Towers’ existing infrastructure and expand and upgrade its network
  • The Consortium will support the development of Europe’s digital infrastructure by driving network expansion and enabling the deployment of next-generation technologies
  • The public takeover will be launched at an offer price of EUR 32.0 per Vantage Towers share, representing a 19% premium to the 3-month volume-weighted average share price

LONDON & FRANKFURT–(BUSINESS WIRE)– Today, a consortium of funds led by Global Infrastructure Partners (“GIP”) and KKR (together “the Consortium”) entered into a strategic co-control partnership with Vodafone GmbH (“Vodafone”) for Vodafone’s c. 81.7% stake in Vantage Towers AG (“Vantage Towers” or “the company”), a leading telecoms tower company in Europe. Vodafone will transfer its stake in Vantage Towers to a holding company (“Oak BidCo”), which will be indirectly co-controlled by Vodafone and the Consortium. The Consortium will obtain a shareholding of up to 50%. Oak BidCo will launch a voluntary public takeover offer for all outstanding free float shares of Vantage Towers AG comprising c. 18.3% of the share capital.

GIP and KKR will be investing through their core infrastructure strategies. Tower Bridge Infrastructure Partners1 will be part of the Consortium as a co-investor, with additional funding for the transaction provided by the Public Investment Fund (“PIF”).

Together, GIP, KKR and Vodafone will provide deep infrastructure expertise to help advance the company’s strategic plans. The Consortium and Vodafone share a joint ambition to accelerate the company’s growth trajectory through additional investments by Vantage Towers in its network and expansion into fast-growing adjacent markets. The Consortium and Vodafone aim to expand Vantage Towers’ business to create a leading pan-European telecoms tower business.

Already a leader in its core markets today, Vantage Towers has a large footprint of approximately 83,000 sites in ten countries, long-term agreements with high-quality tenants and a deep and dense network in the markets in which it operates. The company benefits from consistent organic growth, stable margin development and strong cash generation driven by significant revenue visibility and enhanced commercialization of its tower footprint. In 2021, Vantage Towers signed a landmark agreement with 1&1 Mobilfunk GmbH to support the company in the rapid roll-out of its 5G network, covering potentially up to 5,000 existing sites throughout Germany for the next 20 years.

“We’re delighted to join forces with Vodafone and KKR to invest in Vantage Towers, a high-quality European tower portfolio with strong upside potential. We are looking forward to capturing the exciting value-creating opportunities in the European telecoms infrastructure sector by advancing Vantage Towers’ strategy and supporting its capacity to build new sites. As strategic partners with Vodafone and KKR, we will bring our deep infrastructure expertise and resources to help the company deliver the best data connectivity for individuals and businesses and contribute to enabling Europe’s digital future in the interest of all stakeholders,” said Will Brilliant, Partner and Head of Digital Infrastructure at GIP.

“Together with our strategic partners Vodafone and GIP, we believe Vantage Towers’ high-quality footprint and network across the region ideally position it to meet the ever-growing demand for mobile connectivity in Europe. We have a shared goal of creating a pan-European telecoms champion by continuing to grow and develop the business, leveraging the Consortium’s significant telecoms infrastructure investment experience and global resources. At KKR we are long-term conviction investors in Europe’s digital infrastructure and at Vantage Towers we intend to pursue value-creating investments to capitalise on the growth in this sector and to help drive consolidation in a fragmented market,” said Vincent Policard, Partner and Co-Head of European Infrastructure at KKR.

“This is a landmark moment for both Vodafone and Vantage Towers. This transaction successfully delivers on Vodafone’s stated aims of retaining co-control over a strategically important asset, deconsolidating Vantage Towers from our balance sheet to ensure we can optimise its capital structure and generate substantial upfront cash proceeds for the Group to support our priority of deleveraging. We are excited to partner with GIP and KKR, both world-class investors who bring significant expertise in digital infrastructure and share our long-term vision for Vantage Towers as we collectively take the business to the next stage of its growth,” said Nick Read, Vodafone Group Chief Executive.

Investing in the modernization of Europe’s mobile infrastructure
Together, the strategic partners plan to support Vantage Towers’ multibillion investment program over the next 5 years in order to improve existing infrastructure and to expand as well as upgrade the network. Through their strategic co-control partnership, the Consortium and Vodafone intend to support Vantage Towers to:

  • Accelerate the company’s ambitious program to build new sites for existing clients (“Build-to-suit”, “BTS”) that helps them to meet their coverage obligations and densification requirements.
  • Enhance Vantage Towers’ commercial capabilities and drive the utilization of existing assets by capturing additional co-location opportunities from new and existing third-party customers.
  • Expand the company’s activities beyond its core business into fast-growing adjacent markets such as 5G private networks, data centers, edge computing, small cells and the internet-of-things (“IoT”), and deploying fiber to the tower ecosystem.
  • Further drive consolidation in the European tower sector.

This European growth strategy is expected to allow Vantage Towers to further diversify its tenant base, increase the size and depth of its tower portfolio, while also creating further cost efficiencies and improving its profitability.

With further investments into Vantage Towers’ network, the Consortium and Vodafone are supporting Europe’s digitalization efforts and ensuring that mobile telecommunications infrastructure can keep up with the rapidly rising demand for data traffic and connectivity. Emerging trends such as autonomous driving, telemedicine, virtual/augmented reality, smart farming and IoT depend on the data services and infrastructure that enable them. Vantage Towers has the DNA of a carrier-neutral infrastructure provider, which will play a key role in empowering a sustainably connected Europe. The Consortium is aware of its responsibility to provide access to communications services for the community. It also recognizes the importance of sustainably stewarding these critical assets and is committed to ensuring that Vantage Towers remains a highly attractive employer in the industry.

GIP and KKR have a long track record of collaboration in the infrastructure sector
Both GIP and KKR are leading global infrastructure investors. Together, they form a Consortium with unique experience and expertise in global infrastructure investing, particularly in the digital and communications sector. Both companies share a longstanding institutional relationship and have a proven track record of acting together within one consortium. The Consortium is a strong financial partner for Vantage Towers with access to ample liquidity and long-term value creation objectives to support the business and the necessary investments at this pivotal moment for the industry.

Voluntary takeover offer
As part of their strategic co-control partnership, the Consortium and Vodafone will launch a voluntary public takeover offer to the shareholders of Vantage Towers through Oak BidCo. Vantage Towers’ shareholders will be offered EUR 32.0 per share in cash. Vantage Towers’ shareholders will benefit from a 19% premium to the 3-month volume-weighted average share price.

The voluntary takeover offer will be subject to various customary offer conditions, including the receipt of regulatory antitrust and FDI approvals, with closing expected in the first half of 2023.

As part of the transaction, Oak BidCo and Vantage Towers have entered into a Business Combination Agreement in which Vantage Towers undertook to support the takeover offer. Subject to their review of the offer document, the management board and supervisory board of Vantage Towers welcome and support the offer and intend to recommend that Vantage Towers’ shareholders accept the offer. The current management board members of Vantage Towers will continue to lead the company.

Further, the Consortium and Vodafone intend to implement a domination profit and loss transfer agreement (“DPLTA”) if the final shareholding of Oak BidCo in Vantage Towers is below 95%, or a squeeze-out of non-Oak-BidCo minority shareholders if the aggregate shareholding of Oak BidCo in the company is 95% or higher. Post-closing, Vodafone and the Consortium will consider removing Vantage Towers’ public listing from the Frankfurt Stock Exchange.

Offer document and further information
The voluntary public takeover offer will be made pursuant to an offer document to be approved by the German Federal Financial Supervisory Authority (BaFin). This offer document will be published following receipt of permission from BaFin, at which point the initial acceptance period of the takeover offer will commence. The offer document (in German and a non-binding English translation) and other information pertaining to the public takeover offer will be published on the following website: https://angebot.wpueg.de/oak/.

GIP and KKR are advised by Morgan Stanley as exclusive financial advisor and Latham & Watkins as legal advisor.

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About Vantage Towers
Vantage Towers is a leading tower company in Europe with around 83,000 sites in ten countries, connecting people, businesses and devices in cities and rural areas.

The company was founded in 2020 and is headquartered in Düsseldorf. Vantage Towers has been listed on the Deutsche Börse’s Prime Standard in Frankfurt since 18 March 2021. The shares are included in the MDAX, TecDAX, STOXX Europe 600 and FTSE Global Midcap Indices.

Vantage Towers’ portfolio includes towers, masts, rooftop sites, distributed antenna systems (DAS) and small cells. By building, operating and leasing this infrastructure to MNOs or other network providers such as IoT companies or utilities, Vantage Towers is making a significant contribution to a better-connected Europe.

While already 100% of the electricity that Vantage Towers uses to operate its infrastructure is obtained from renewable energy sources, green energy is increasingly being generated directly on site with the help of solar panels, micro wind turbines and in future also hydrogen solutions. This fits well into the overall strategy of the company to drive a sustainable digitalisation in Europe and to support partners through technological innovation in decarbonisation and achieving their climate goals.

For more information, please visit our website at www.vantagetowers.com, follow us on Twitter at @VantageTowers or connect with us on LinkedIn at www.linkedin.com/company/vantagetowers.

About Vodafone
Unique in its scale as the largest pan-European and African technology communications company, Vodafone transforms the way we live and work through its innovation, technology, connectivity, platforms, products and services.

Vodafone operates mobile and fixed networks in 22 countries, and partners with mobile networks in 47 more. As of 30 June 2022, we had over 300 million mobile customers, more than 28 million fixed broadband customers and 22 million TV customers. Vodafone is a world leader in the Internet of Things (“IoT”), connecting around 160 million devices and platforms.

We have revolutionised fintech in Africa through M-Pesa, which celebrates its 15th anniversary in 2022. It is the region’s largest fintech platform, providing access to financial services for more than 50 million people in a secure, affordable and convenient way.

Our purpose is to connect for a better future by using technology to improve lives, digitalise critical sectors and enable inclusive and sustainable digital societies.

We are committed to reducing our environmental impact to reach net zero emissions across our full value chain by 2040, while helping our customers reduce their own carbon emissions by 350 million tonnes by 2030. We are driving action to reduce device waste and achieve our target to reuse, resell or recycle 100% of our network waste.

We believe in the power of connectivity and digital services to improve society and economies, partnering with governments to digitalise healthcare, education and agriculture and create cleaner, safer cities. Our products and services support the digitalisation of businesses, particularly small and medium enterprises (SMEs).

Our inclusion for all strategy seeks to ensure no-one is left behind through access to connectivity, digital skills and creating relevant products and services such as access to education, healthcare and finance. We are also committed to developing a diverse and inclusive workforce that reflects the customers and societies we serve.

For more information, please visit http://www.vodafone.com, follow us on Twitter at @VodafoneGroup or connect with us on LinkedIn at http://www.linkedin.com/company/vodafone.

About Global Infrastructure Partners
GIP is a leading independent infrastructure fund manager that makes equity and debt investments in infrastructure assets and businesses. GIP targets investments in the energy, transport, digital infrastructure, and water/waste sectors in both OECD and select emerging market countries. Headquartered in New York, GIP operates out of 10 offices: New York, London, Stamford (Connecticut), Sydney, Melbourne, Brisbane, Mumbai, Delhi, Singapore and Hong Kong. GIP manages c. US $84 billion for its investors. GIP’s portfolio companies have combined annual revenues of c. US $68 billion and employ over 100,000 people. For more information, visit www.global-infra.com.

About KKR
KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries.

KKR established its Global Infrastructure business in 2008 and has since grown to one of the largest infrastructure investors globally with a team of more than 75 dedicated investment professionals. The firm currently oversees approximately US$50 billion in infrastructure assets globally as of 30 September, 2022, and has made over 65 infrastructure investments across a range of sub-sectors and geographies. KKR’s infrastructure platform is devised specifically for long term, capital intensive structural investments.

For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

1 Separately Managed Account managed by GIP

Media Contact Consortium (on behalf of GIP and KKR)

Germany

Thea Bichmann
Mobile: +49 172 13 99 761
Email: thea.bichmann@fgsglobal.com

Christian Falkowski
Mobile: +49 171 86 79 950
Email: christian.falkowski@fgsglobal.com

UK

Alastair Elwen
Telephone: +44 20 7251 3801
Email: alastair.elwen@fgsglobal.com

Sophia Johnston
Telephone: +44 20 7251 3801
Email: sophia.johnston@fgsglobal.com

Source: KKR

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EQT Infrastructure broadens investor base in GlobalConnect

eqt
  • EQT Infrastructure welcomes Mubadala as an investor in GlobalConnect
  • The broadened investor base adds new resources and expertise, supporting GlobalConnect’s long-term ambition to increase societies’ digital connectivity

EQT is pleased to announce that the EQT Infrastructure III and IV funds (“EQT Infrastructure”) have signed an agreement to sell a minority stake in GlobalConnect (the “Company”) to Mubadala Investment Company (“Mubadala”). Having been invested in the Company since 2017, EQT Infrastructure will remain as the largest owner following the closing of the transaction.

Headquartered in Stockholm, Sweden, GlobalConnect is a fiber-based data communication and data center services provider to enterprises, public institutions, and consumers in Northern Europe. The Company was created in 2019 through the combination of four independent fiber platforms in Denmark, Norway and Sweden, owned by EQT Infrastructure.

In times of increasing data volumes and ever-growing demand for fast and reliable connectivity, GlobalConnect plays an important role in providing essential digital infrastructure solutions to the societies it operates in. Today, GlobalConnect’s infrastructure carries more than 50 percent of all internet traffic generated in the Nordics across its network of 150,000 km of fiber infrastructure and 35,000 m2 data center space, and it employs around 1,800 people in the region.

Rooted in an ambition to provide fast and secure internet access to all, EQT Infrastructure has over the years invested significantly in GlobalConnect’s Fiber-to-the-Home deployment in underserved areas and remote parts of Sweden and Norway, enabling digital inclusion and bridging the divide between urban and rural regions. As made evident by the pandemic, having access to fast and robust bandwidth increases societies’ resilience and strengthens companies’ competitiveness.

By welcoming Mubadala as a minority investor in GlobalConnect, EQT Infrastructure aims to broaden the Company’s long-term shareholder base, while drawing on Mubadala’s prior investment experience in data center and Fiber-to-the-Home assets in numerous markets.

Carl Sjölund, Partner within EQT Infrastructure’s Advisory Team, said, “GlobalConnect is a perfect example of EQT Infrastructure’s strategy to back companies that provide essential services to society. As data usage and internet traffic continue to increase, it is vital that the underlying digital infrastructure keeps up to meet future demand. EQT Infrastructure remains committed to GlobalConnect’s ambition to increase societies’ digital connectivity and we are happy to welcome Mubadala to come along on this journey”.

Khaled Abdulla Al Qubaisi, Chief Executive Officer, Real Estate and Infrastructure Investments at Mubadala, said, “We are pleased to be investing with our long-term partner, EQT, in GlobalConnect. As a responsible investor, we highly prize those deals that enable us to invest in high conviction assets and sectors for value creation and to deliver a positive impact on communities. Investing in digital infrastructure allows us to achieve both these goals. We look forward to working with GlobalConnect and EQT to capitalize on growth opportunities in data center and Fiber-to-the-Home assets, and to support Europe’s digital infrastructure development, a vital enabler of digital inclusion and socioeconomic progress.”

The transaction is subject to customary conditions and approvals.

EQT Infrastructure was advised by Citigroup and Deutsche Bank.

Contact
EQT Press Office, press@eqtpartners.com, +46 8 506 55 334

About EQT
EQT is a purpose-driven global investment organization with EUR 77 billion in assets under management as of 30 June 2022, across 36 active funds. EQT funds have portfolio companies in Europe, Asia-Pacific and the Americas with total sales of approximately EUR 29 billion and more than 280,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.

More info: www.eqtgroup.com
Follow EQT on LinkedIn, Twitter, YouTube and Instagram

About GlobalConnect
GlobalConnect Group is one of the leading digital infrastructure and data communication providers in Northern Europe. The Group delivers end-to-end solutions across its own infrastructure consisting of 150,000 kilometers fiber network and 35,000 sqm data center space in Denmark, Norway, Sweden, Germany and Finland. GlobalConnect Group employs approximately 1,800 people, has 30,000 B2B customers and connects more than 700,000 households with a high-capacity fiber network. GlobalConnect Group is the result of 2019 and 2020 mergers between Broadnet, GlobalConnect and IP-Only. In the B2C segment, the group operates under the brands IP-Only, HomeNet and Onefiber, while operating as GlobalConnect in the B2B segment across all its markets.

More info: www.globalconnectgroup.com

About Mubadala Investment Company 
Mubadala Investment Company is a sovereign investor managing a global portfolio, aimed at generating sustainable financial returns for the Government of Abu Dhabi.

Mubadala’s $284 billion (AED 1045 billion) portfolio spans six continents with interests in multiple sectors and asset classes. We leverage our deep sectoral expertise and long-standing partnerships to drive sustainable growth and profit, while supporting the continued diversification and global integration of the economy of the United Arab Emirates.   

For more information about Mubadala Investment Company, please visit: www.mubadala.com   

For media enquiries, please contact: Danielle.Ferns@edelman.com ; Mazar.Masud@edelman.com

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CVC Credit supports Cinven’s acquisition of Euro Techno Com

CVC Capital Partners

CVC Credit is pleased to announce that it has committed debt facilities to support Cinven’s acquisition of Euro Techno Com (“ETC Group”), a specialised distributor for the telecom and technology infrastructure industry.

Founded in 1993, ETC Group is a global leader and partner in the design, procurement and distribution of materials, tooling and equipment used by telecom operators and their subcontractors to install, build and maintain wireline and wireless infrastructure and other digital infrastructure. Headquartered in France, the Group has c.1,100 employees and c.14,000 customers based primarily across Europe and the US.

ETC Group is led by an experienced management team, with a strong record of successful acquisitions to broaden its geographic scope and customer base. The company has built a strong market position as a global leader and critical link between sourcing and distribution of materials for the telecommunications industry in France, Portugal, the US, UK, Israel, Dominican Republic, Qatar, Oman, UAE, Hong Kong, Morocco, Germany and Poland.

Quotes

This transaction is a great example of the power of the CVC Network, which allows us to draw on its knowledge and experience, particularly that of CVC’s Technology, Strategic Opportunities and France teams

Andrew Davies Partner and Co-Head of Private Credit

Dominic Connelly, Director at CVC Credit commented: “ETC Group’s critical and highly regarded service offering, position it as a key enabler in the rollout of telecoms infrastructure. Its resilient and bespoke business model, as well as market tailwinds, are helping the business to accelerate its growth and increase market share, while at the same time, continuing to deliver high levels of customer satisfaction.”

Andrew Davies, Partner and Co-Head of Private Credit at CVC Credit, said: “This transaction is a great example of the power of the CVC Network, which allows us to draw on its knowledge and experience, particularly that of CVC’s Technology, Strategic Opportunities and France teams, which will help us support ETC Group better during their next stage of exciting growth.”

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Ardian acquires majority stake in telecoms operator, Aire Networks

Ardian

Ardian, a world leading private investment house, has today announced its acquisition of a majority stake in Aire Networks, the Alicante-based telecommunications services company, through its latest buyout fund.  Ardian has purchased the stake from Magnum Capital, and will support Aire Network’s growth plans in the coming years.

Aire Networks, based in Elche, Alicante, was founded in 2002 by Raul Aledo, Miguel Tecles and Emilio Gras, who are currently the CEO, CTO and CIO of the company respectively, and maintain their stake in the company. The Ardian Buyout team will work together with the Aire Networks management team to continue driving its ambitious growth plan.

The company provides telecommunications services for operators and companies, offering connectivity, digitalisation and digital transformation services based on cloud and neutral fibre. The company is a market-leader in Spain and Portugal, and is developing an international expansion plan.

With Ardian’s support, the telecommunications company will continue to drive its growth, with the aim of becoming the European market-leader. Aire Networks has made several acquisitions of other operators since 2019, including Unelink and Prored, its rival LCRcom, and the Portuguese company, AR Telecom. It aims to further expand its portfolio of products and services, as well as strengthening its geographical presence.

This investment has been made by the Ardian Buyout team, led by Gonzalo Fernandez-Albiñana in Spain. The company will be managed independently from Adamo, another Ardian portfolio company owned by the Infrastructure team, led by Juan Angoitia in Spain.

“Aire Networks is a company with a unique business model that makes it a key player in the digitalization of companies and the development of communications. We are very pleased to have the opportunity to support Raul, Miguel, Emilio and the entire Aire team in this new phase of growth.” Philippe Poletti, Member of the Executive Committee and Head of the Ardian Buyout team

The closing of the transaction is subject to customary closing conditions, including obtaining regulatory approvals.

ABOUT ARDIAN

Ardian is a world leading private investment house, managing or advising $130bn of assets on behalf of more than 1,300 clients globally. Our broad expertise, spanning Private Equity, Real Assets and Credit, enables us to offer a wide range of investment opportunities and respond flexibly to our clients’ differing needs. Through Ardian Customized Solutions we create bespoke portfolios that allow institutional clients to specify the precise mix of assets they require and to gain access to funds managed by leading third-party sponsors. We also provide a specialist service for private clients through Ardian Private Wealth Solutions. Ardian is majority-owned by its employees and places great emphasis on developing its people and fostering a collaborative culture based on collective intelligence. Our 900+ employees, spread across 15 offices in Europe, the Americas and Asia, are strongly committed to the principles of Responsible Investment and are determined to make finance a force for good in society. Our goal is to deliver excellent investment performance combined with high ethical standards and social responsibility.
At Ardian we invest all of ourselves in building companies that last.

www.ardian.com

Media contact

ARDIAN

HEADLAND

ardian@headlandconsultancy.com  

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Play and InfraVia Capital Partners join forces to provide 6 million Polish homes with fiber broadband connectivity in a new open access wholesale model.

InfraVia

On June 19, 2022 Play Group, a leading fixed, digital television and mobile convergent player in Poland, operating Play and UPC brands, together with InfraVia Capital Partners, a leading independent private equity firm specializing in infrastructure and technology investments, signed an agreement which paves the way for providing access to high-speed connectivity to 6 million homes in Poland, using existing infrastructure and through further significant investments. The network will be available for all telecommunication operators in a wholesale, open-access model.

Upon the preliminary agreement, which is subject to regulatory approval, Infravia Capital Partners will acquire 50% of shares of Play Group’s subsidiary, operating under the name FiberForce, for PLN 1,775 billion. At transaction close, which is currently scheduled for the end of 2022, Play/UPC will transfer its existing HFC and FTTx asset base of 3.7 million homes passed to FiberForce. On top of that, FiberForce seeks to build more than 2 million additional fiber optic connections. FiberForce will make its network infrastructure available to other telecommunications operators (including Play and UPC) in an open and
non-discriminatory access model, to maximize take up of the built infrastructure by consumers.

Jean Marc Harion, CEO Play and UPC: ‘This partnership is yet another milestone to strengthen our nationwide infrastructure leadership, allowing millions of new customers in Poland to benefit from superfast Internet. Due to its open-reach wholesale model, we want to set new standards for broadband connectivity access and secure everyone freedom of choice. We hope this new investment will significantly help narrow the digital gap and deliver even more innovation to the benefit of our customers, society and the economy.’

Vincent Levita, CEO and Founder of InfraVia: ‘We are extremely happy to develop our partnership with iliad Group in this joint-venture with Play Group. This will allow us to build a key asset in a growing sector with a leading partner.’

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Cinven enters into exclusive negotiations to acquire a majority stake in Euro Techno Com Group

Cinven

Partnership with founder and CEO to back an industry leader in its global expansion

International private equity firm, Cinven, today announces that it has entered into exclusive negotiations to acquire a majority stake in the Euro Techno Com Group (‘ETC Group’, ‘ETC’ or ‘the Group’), a one-stop shop specialised distributor for the telecom and technology infrastructure industry, from Carlyle. The Founder and CEO, Cédric Varasteh, would retain a significant stake. Financial details of the transaction are not disclosed.

Founded in 1993 by Cédric Varasteh, ETC Group is a global leader and partner in the design, procurement and distribution of materials, tooling and equipment used by telecom operators and their subcontractors to install, build and maintain wireline and wireless infrastructure and other digital infrastructure.

Headquartered in France, the Group’s c. 1,100 employees service the needs of ETC’s c. 14,000 customers primarily across Europe and the US.

Cinven’s Technology, Media and Telecom (‘TMT’) and Business Services Sector teams, working closely with Cinven’s French and North America Regional teams, identified ETC Group as an attractive investment given:

  • Structural market tailwinds, including the continued need for telecom infrastructure investment and network maintenance spend, driven by growing data consumption trends, cloud and edge computing and increased connectivity;
  • ETC’s leading position serving telecoms networking companies in a highly attractive and resilient market segment, underpinned by its strong reputation and customer advocacy given its differentiated proposition and value-added service offering;
  • ETC’s strong historical financial performance, which has been driven by a combination of organic growth in existing markets, international expansion, and add-on acquisitions. Today the Group generates more than €1 billion of revenues;
  • The highly fragmented markets in which ETC operates, which provide opportunities for the Group to continue to pursue M&A across a range of product segments and regions, including in Europe and the US, alongside further enhancing its organic growth trajectory; and
  • The strong entrepreneurial management team, led by ETC’s founder and CEO, Cédric Varasteh.

This transaction would build on Cinven’s strong and proven track record in the telecoms sector, including through its funds’ investments in Numéricable in France, Ziggo in the Netherlands, MásMóvil in Spain, Ufinet in Spain and Latin America, and Nitel in the US.  It would also build on Cinven’s strong Business Services and distribution expertise, including through its funds’ investments in Barentz and Alhsell. In addition to the significant stake that would be retained in the Group by ETC’s founder and CEO, the previous majority shareholder, Carlyle, would also re-invest in a minority stake, alongside Cinven.

Cédric Varasteh, Founder and CEO of ETC Group, commented:

“Our business has a leading position in an industry where the intersection of technological change and network resilience is driving significant opportunity. We have the ambition to create a global leader in our industry and through Cinven’s investment, we have a partner with significant experience in the telecom and distribution sectors and look forward to taking our business forward at pace.”

Thomas Railhac, Partner at Cinven, added:

“Telecoms infrastructure and maintenance investment continues to show strong growth characteristics based on the need for operators to invest in the latest technologies and network resilience in order to meet the needs of their customers. ETC Group is well positioned to create value from these trends through its one-stop shop specialist approach, its international footprint and its strong reputation. We are delighted to partner with Cédric Varasteh and his team and we look forward to supporting them on their growth ambition.”

David Giroflier, Senior Principal at Cinven, added:

“Cinven’s significant experience in telecoms and distribution combined with an interest in seeking highly resilient investment opportunities led us to ETC Group. We are delighted to be investing alongside an ambitious and driven management team that has real focus and can leverage Cinven’s capital and experience to drive value though organic growth and acquisitions. Once again, Cinven is delighted to be partnering with a founder, having also recently invested in MásMóvil, Drake Software, think-cell, True Potential and Nitel.”

Cinven is a responsible, ESG-focused investor, and committed to maintaining the environmental, regulatory and employee stakeholder responsibilities of ETC Group.

The transaction is subject to works council consultation and customary regulatory approvals.

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Norlys to create partnership with PGGM and EDF Invest consortium selling a 35% stake in its Norlys Tele fiber division

EDF Invest

Energy-telco group Norlys has signed a conditional agreement to sell a 35% stake in its wholesale fibernet business to a consortium led by PGGM, the Dutch pension investor, and including EDF Invest, the real assets fund of the French energy group EDF. The purchase price will not be made public, but it will be among the largest recent fiber deals in Europe when finalized.
”We are both glad and proud. When we started digging fiber some 15 years ago, not everyone could see the rationale. Now time has shown that it was a wise decision, but we are not resting on our laurels, and the new partnership aims to ensure that we can continue the positive development,” says Jens Erik Platz, Norlys chairman of the board.

PGGM Infrastructure Fund and EDF Invest both have solid experience with fiber investments in countries such as Germany, France, the Netherlands and Belgium.
”With PGGM and EDF Invest as co-owners, we will free up capital for other strategically important projects, not least a possible mobile acquisition. But we also gain a partner with unique insights that can be leveraged when further developing our fiber activities”, says Norlys CEO Niels Duedahl.
The deal comes after a structured process involving a large number of potential buyers.
”We have had intense and constructive dialogues with Norlys management, and we are convinced that there is perfect match between Norlys’ values and aspirations and PGGM Infrastructure Fund’s strategy, investing for the long-term in sustainable infrastructure companies with a positive impact on modern society. At the same time it is important to stress that Norlys will still be running the company, albeit now with us as a “co-driver”,” says Dennis van Alphen, head of PGGM’s Digital Infrastructure investments.

The Norlys Tele fibernet covers approx. 700,000 households, primarily in Jutland, making it the largest network in Denmark and one of the most advanced roll-outs in Europe. The goal is to pass 1 million households by the end of 2023, and Norlys is now also digging on both Funen and Zealand. The fibernet is open to external service providers, and end users may freely choose between service providers such as Yousee, Hiper, Telenor, Telia and Stofa.
”Norlys’ fibernet is one of the best run and most attractive networks which we have seen in all of Europe. At the same time there is ample opportunity for further developing the business together with the Norlys management, who have already created outstanding results,” says Pierre Benoist d’Anthenay, head of EDF Invest.
The deal is subject to final approval by Norlys’ board of representatives, which will decide on the matter at an extraordinary meeting to be held on 22 March 2022. The deal is also conditional upon obtaining foreign direct investment approval from the Danish Business Authority.

Further information:
Norlys: Ulf Lund +45 41329500 / ulflun@norlys.dk
PGGM: Maurice Wilbrink +31 (0)30 277 97 35 / maurice.wilbrink@pggm.nl
EDF Invest: Alexandre Pieyre +33 6 69 24 68 92 / Alexandre.pieyre@edf.fr

About Norlys
Norlys is a Danish cooperative with a mission to contribute to a green and digitized Den-mark by leveraging the strengths of responsible communities. Annual revenue (2020) to-tals DKK 9bn with annual investments of more than DKK 2bn into Norlys’ power grid and fiber infrastructure as well as renewable energy sources such as solar and wind. With some 735,000 coop-members, 1.7 million customers and 2,900 employees Norlys is the largest integrated energy and telco group in Denmark.
www.norlys.dk

About PGGM
PGGM is a not-for-profit cooperative pension fund service provider. As a pensions administrator, asset manager and advisor to pension fund boards, it executes its social mandate: to provide for good old-age incomes for 4.4 million participants in the Netherlands. On December 31, 2021 PGGM managed long-term pension capital of EUR 291 billion worldwide. Rooted firmly in the Dutch healthcare sector, PGGM develops innovative solutions for labour market issues in this sector, alone or with strategic partners. Our member organisation PGGM&CO supports 764,000 workers and pensioners with a background in healthcare.
www.pggm.nl

About EDF Invest
EDF Invest is the investment arm of EDF for non-listed Dedicated Assets. Dedicated Assets will fund the decommissioning of EDF’s power plants in France. EDF Invest currently manages around €9bn of equity and is targeting around €12 billion in the next few years. Our mission is to diversify EDF’s portfolio of Dedicated Assets and lengthen its investment horizon by targeting 3 non-listed asset classes in France and abroad: Infrastructure, Real Estate and Funds.
Follow EDF Invest on: http://www.edfinvest.com/ andhttps://www.linkedin.com/company/edf-invest.

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Blackstone Acquires Interplex, a Global Leader in Customized Connector Solutions for High-Growth Markets

Blackstone

SINGAPORE, January 20, 2022 – Blackstone (NYSE:BX) announced today that private equity funds managed by Blackstone (“Blackstone”) have acquired Interplex, a global leader in innovative and customized connector solutions for the auto, medical and information communications technology (ICT) markets, from Baring Private Equity Asia’s affiliated private equity funds (“BPEA”). The company has developed strong R&D capabilities and services a portfolio of blue-chip industry customers through a manufacturing footprint spanning 13 countries.

Interplex is a key industry leader in future mobility power and signal connector technology, working closely with electric vehicle (EV) customers to develop proprietary solutions for EV powertrains, battery systems, autonomous driving, and other vehicle electrification applications. The company has also actively positioned itself for other high-growth connector and high precision products in markets such as smart medical devices, life sciences, and ICT. Interplex will continue to support customers in providing solutions for their increasingly complex product development roadmap.

Ed Huang, Chief Operating Officer of Asia Private Equity for Blackstone, said: “Interplex is a global leader in developing innovative interconnect solutions targeting key markets that we believe have attractive growth prospects – markets such as EVs and future mobility, healthcare, and digital infrastructure. This investment reflects Blackstone’s continued global focus on investing in leading companies that are well positioned in what we refer to as good neighborhoods. We are very pleased to partner with a world-class management team and look forward to supporting Interplex on its next phase of growth.”

About Blackstone
Blackstone is the world’s largest alternative asset manager. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, and the communities in which we work. We do this by using extraordinary people and flexible capital to help companies solve problems. Our $731 billion in assets under management include investment vehicles focused on private equity, real estate, public debt and equity, life sciences, growth equity, opportunistic, non-investment grade credit, real assets and secondary funds, all on a global basis. Further information is available at www.blackstone.com. Follow Blackstone on Twitter @Blackstone.

Media Contact
Ellen Bogard
Ellen.Bogard@Blackstone.com
Tel: +852 3651 7737

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Audax Private Equity Announces Investment in Centerline Communications

Audax Private Equity Announces Investment in Centerline Communications

JAN 11, 2022

Audax Private Equity (“Audax”) announced today that it has acquired a controlling interest in Centerline Communications LLC (“Centerline”), a leading professional services organization focused on the design, build, and maintenance of wireless and wireline network infrastructure from Wincove Private Holdings, LP (“Wincove”) and Stone-Goff Partners (“Stone-Goff”). This transaction took place in August 2021 and terms of the transaction were not disclosed.

Josh Delman, Founder and CEO of Centerline, will continue to lead the company alongside the existing management team. Josh and Wincove will maintain minority ownership positions in the company alongside Audax.

The investment will support Centerline’s continued organic and acquisition growth as it pursues its mission to grow its national footprint and further expand its scope of services focused on the development and maintenance of critical network infrastructure.

Since Audax’ initial investment, Centerline has completed three acquisitions that have helped expand the company’s geographic coverage and range of service offerings: Maicom LLC (“Maicom”), which closed in August 2021; P. Marshall & Associates (“PM&A”), which closed in December 2021; and J5 Infrastructure Partners (“J5”), which closed in December 2021.

Maicom is a critical infrastructure focused services organization based in North Andover, MA, that provides critical infrastructure installation and maintenance for major multiple-system operators (“MSO’s”) throughout the United States and Canada in support of their networks. Centerline acquired Maicom from the Boston-based investment firm, Heritage Holding.

PM&A is an engineering, real estate, and construction management organization based in Atlanta, GA that provides professional services to national wireless operators and major infrastructure owners throughout the southeast and gulf coast of the United States.

J5, based out of Irvine, CA, is a real-estate, construction management, and engineering firm supporting national wireless operators and several national and regional broadband providers throughout the western United States. Centerline acquired J5 from Raleigh-based investment firm, Ridgemont Equity Partners. The founders of each business (Paul Maiuri from Maicom, Patrick Marshall from PM&A, and John Barker from J5) and their respective management teams are planning to remain with the combined platform. With these strategic acquisitions, the Centerline platform now has over 1,200 professionals helping to support the deployment of critical infrastructure throughout the United States and Canada.

Josh Delman, Founder and CEO of Centerline, said, “We are thrilled to be partnering with Audax and look forward to benefitting from their deep industry expertise. We believe this partnership will help us to meet the growing demand within our customers to work with larger, self-performing service organizations that can provide turn-key solutions to critical infrastructure within their national networks. We are excited to have expanded our coverage through our recent acquisitions and to be diversifying our services within the platform to better support our customers.”

“We believe Centerline is well-positioned to grow organically and through acquisitions as it continues its mission to build out a broad range of critical infrastructure services nationally,” said David Wong, Managing Director of Audax. “We are thrilled to be partnering with the company’s highly-experienced management team to help take the business to the next level.”

Keybanc Capital Markets acted as an advisor to Centerline in the transaction with Audax and Husch Blackwell served as legal counsel. Ropes & Gray LLP and Fredrikson & Byron served as legal counsel to Audax.

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Cinven to invest in Ufinet International

Cinven

Transaction underscores Cinven’s commitment to Ufinet, Ufinet’s continued growth prospects and the strength of Cinven’s strategic partnership with its co-shareholder Enel

International private equity firm Cinven today announces that the Seventh Cinven Fund has agreed to make a majority investment in Ufinet International (‘Ufinet’ or ‘the Group’), a leading fibre network operator headquartered in Spain and operating in Latin America, for an enterprise value of approximately €2.5 billion.

The transaction underscores Cinven’s commitment to Ufinet and builds on its successful track record of investing in the business through prior Cinven Funds. Enel, that has been a minority co-shareholder in Ufinet since 2018, will re-invest a minority stake in the Group.

Ufinet leases optical fibre infrastructure (‘dark fibre’ services) and provides transmission services (‘lit fibre’) which together comprise c. 90% of revenues. The business also provides other telecom infrastructure like Fibre to the Home (‘FTTH’) or small cells and associated value-added services.

Ufinet operates across 17 countries and more than 2,000 cities in Latin America including in Colombia, Panama, Guatemala and Costa Rica, providing fibre infrastructure and transmission services to telecom operators. Ufinet was established as an independent business in June 2014, following its demerger from Gas Natural Fenosa, the Spanish utility provider, and today employs c.1,400 people across Spain and Latin America.

During Cinven’s ownership, Ufinet has demonstrated significant growth including:

  • Strong revenue and EBITDA growth increasing by c.500% and c.700% respectively;
  • Successful buy and build with the completion and integration of 9 value-accretive acquisitions including Nedetel in Ecuador, NB Telecom and Netell in Brazil, among others;
  • Consistent investment in network improvement and expansion, growing its fibre network by three times and maintaining network performance levels well above industry requirements; and
  • Job creation with the number of Ufinet employees growing by more than 1,400% from less than 100 employees to c. 1,400.

Cinven’s Iberia and TMT teams believe Ufinet is a compelling investment opportunity given its:

  • Strong structural growth drivers, given the significant increase in businesses transitioning to using high speed connectivity, driving further demand for fibre;
  • Operations in nascent markets with strong growth trajectories, underpinned by increased usage and penetration of fixed / mobile broadband and data centres;
  • Significant international expansion and buy and build opportunities, building on its strong track record of successful geographic and acquisitive growth;
  • Strong financial performance, with profits growing at nearly 30% per annum since 2018, including robust performance throughout COVID-19, demonstrating the resilience of the business model;
  • Significant ‘first mover’ advantage, given its well-invested and extensive fibre network; and
  • Industry-leading management team led by CEO, Iñigo Garcia del Cerro Prieto, who has successfully executed the growth strategy of the business since its independence from Gas Natural Fenosa.

Commenting on the transaction, Jorge Quemada, Partner at Cinven, said:

“Ufinet has significant long term strategic ambitions to expand and further internationalise its business, given the strong market dynamics driving the increased use of fibre. Cinven has successfully invested in Ufinet before – as well as in telecom providers in other markets, including Ziggo, Numéricable and MasMovil in the Netherlands, France and Spain, respectively. The Cinven team understands the telecom industry extremely well and, combined with the regional expertise of the Cinven Iberia team, continues to see compelling growth opportunities for Ufinet through a combination of market expansion, organic growth and further buy and build.

Cinven is delighted to continue its strategic partnership with Enel in support of Ufinet’s next phase of growth. In addition, the Cinven team is excited to back the first-class management team, led by Iñigo Garcia del Cerro Prieto, who has already executed a highly successful growth strategy for Ufinet over the past seven years.”

Iñigo Garcia del Cerro Prieto, CEO of Ufinet, added:

“We have had the privilege of working alongside Cinven and Enel since 2014 and 2018 respectively. With the renewal of their partnership, Ufinet strengthens its commitment to grow and expand the business, capitalising on the experience and scale of its shareholders to consolidate and increase its presence in the markets where it operates.

The transaction reinforces Ufinet’s long-term vision, enabling the Company to expand its footprint and become the largest neutral operator of telecommunications infrastructure in Latin America.”

Cinven’s previous successful investments in telecoms have included Ziggo, the leading cable operator in the Netherlands; Numéricable, the French cable operator, both successfully realised following significant buy and build strategies; and MasMovil, one of the largest telecoms operators in Spain which successfully acquired Euskaltel in 2021.

The transaction will be subject to certain regulatory approvals.

Advisers to Cinven on the transaction included Natixis (M&A), Deloitte (tax), Altman Solon (commercial due diligence), KPMG (financial due diligence) and Freshfields (legal).

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