Tag Archives: Telecom

Cinven, KKR and Providence complete the acquisition of Spanish telecommunications operator, MASMOVIL

Providence

November 17, 2020

Cinven, KKR and Providence complete the acquisition of Spanish telecommunications operator, MASMOVIL

The acquisition of MASMOVIL demonstrates a commitment from the Consortium towards the development of the Spanish telecom market over the coming years

Madrid, Spain, 17 November 2020 – Lorca Telecom Bidco SAU, a company indirectly and collectively majority owned by funds or vehicles managed or advised by Cinven, funds or vehicles managed or advised by KKR and funds or vehicles managed or advised by Providence Equity Partners L.L.C. (“Providence”) (jointly “the Consortium”), has successfully completed the acquisition of Spanish telecommunications operator MASMOVIL IBERCOM, S.A. (“MASMOVIL” or “the Group”) having acquired 99.3% of the Group’s outstanding shares. At the tender offer price, MASMOVIL was valued at approximately EUR 5.3 billion.

The Consortium’s support will provide MASMOVIL with the opportunity to accelerate its investment strategy and develop new projects aimed at providing the Group’s customers, who report some of the highest satisfaction rates in Spain, high quality access to MASMOVIL’s networks at a time when the telecommunications sector is becoming increasingly important in the country.

In addition, this transaction aims to continue creating value for the telecommunications market, customers, and employees of the Group, in addition to, delivering a positive impact on people and on the planet – in line with MASMOVIL’s corporate purpose.

Headquartered in Madrid, MASMOVIL is the fourth largest telecommunications operator in Spain, with more than 11 million customers. It provides triple-play fixed-line, mobile and internet services to residential customers, businesses and operators through a number of brands including Yoigo, MASMOVIL, Pepephone, Llamaya, Lebara, Lycamobile and Hits mobile.

The Consortium believes MASMOVIL represents an attractive investment opportunity because of its strong positioning in Spain, the increasing demand for greater quality and value for money in the Spanish telecommunications sector, and the range of growth opportunities available for the business over the medium-term.

Commenting on the transaction, Jorge Quemada and Thomas Railhac, Partners at Cinven, said:

“We are delighted to have completed the acquisition of such a major European business which has become the leading challenger in Spain. The experienced management team has demonstrated its ability to consistently deliver excellent results, even in fast changing environments. MASMOVIL has a highly successful track record and has achieved revenue and double-digit EBITDA growth both organically and through acquisitions and, more recently, through the actions they have taken since COVID-19. We strongly believe MASMOVIL is well positioned in the market for further exciting growth opportunities.”

Iñaki Cobo and Jean-Pierre Saad, Partners at KKR, said:

“We are excited to invest behind one of our core themes, telecommunications and digitalization, and are confident that MASMOVIL is well positioned to continue capturing growth opportunities with its outstanding management team. The investment in MASMOVIL reinforces KKR’s commitment to Spain where we have already deployed almost $6 billion since 2010.”

Robert Sudo, Managing Director at Providence Equity, said:

“As a long-standing investor in MASMOVIL, we continue to see exciting growth opportunities for the business and are pleased Cinven and KKR share our long-term vision for the company. The management team’s proven track record leading the business places MASMOVIL in a strong position to succeed as a private business in a competitive market ripe for consolidation.”

The offer document with all the information about the voluntary tender offer are available on the following website: https://www.grupomasmovil.com/en/takeover-bid-on-masmovil-group/

Advisors to the Consortium for this transaction, included: Barclays, Deutsche Bank and Morgan Stanley (M&A); Freshfields Bruckhaus Deringer LLP, Paul Weiss, Rifkind, Wharton & Garrison LLP and Uria Menéndez (legal); Analysys Mason and McKinsey (commercial); Deloitte (financial, tax, operations, structuring); and EY (IT).

Media contacts for the Consortium:

Cinven

Vanessa Maydon: Tel. +44 (0) 7802 961 902
Email. vanessa.maydon@cinven.com

Peter Folland: Tel. +44 (0)787 099 2924
Email. peter.folland@cinven.com

Alejandra Moore Tel. +34 91 531 23 88
Email. amoore@grupoalbion.net

KKR

Alastair Elwen / Alice Neave: Tel. +44 (0)20 7251 3801
Email. kkr@finsbury.com

Sarah Estébanez: Tel. +34 91 702 10 10
Email. sestebanez@tinkle.es

Xana Peña: Tel. +34 91 702 10 10
Email. xpena@tinkle.es

Providence Equity Partners

Charles Chichester Tel. +44 (0) 7810 825 444
Rory King Tel. +44 (0) 7917 086 227
Email. Prov-SVC@sardverb.com

About Cinven

Cinven is a leading international private equity firm focused on building world-class global and European companies. Its funds invest in six key sectors: Business Services, Consumer, Financial Services, Healthcare, Industrials and Technology, Media and Telecommunications (TMT). Cinven has offices in London, New York, Frankfurt, Paris, Milan, Madrid, Guernsey, Luxembourg and Hong Kong. Cinven has significant experience in the telecoms and fibre sectors, with its funds’ previous investments including Numericable, Ziggo, Eutelsat and Ufinet. Cinven also has a long-term presence and a successful track record in Spain, with its funds’ current investments in the country including Ufinet International, Hotelbeds, Planasa and Tinsa. Cinven takes a responsible approach towards its portfolio companies, their employees, suppliers, local communities, the environment and society. Cinven Capital Management (V) General Partner Limited, Cinven Capital Management (VI) General Partner Limited, Cinven Capital Management (VII) General Partner Limited and Cinven Capital Management (SFF) General Partner Limited are each authorised and regulated by the Guernsey Financial Services Commission, and Cinven Partners LLP, the advisor to the Cinven Funds, is authorised and regulated by the Financial Conduct Authority. In this press release ‘Cinven’ means, depending on the context, any of or collectively, Cinven Holdings Guernsey Limited, Cinven Partnership LLP, Cinven (LuxCo1) S.A., and their respective Associates (as defined in the Companies Act 2006) and/or funds managed or advised by any of the foregoing. For additional information on Cinven please visit www.cinven.com and www.linkedin.com/company/cinven/.

About KKR

KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, credit and real assets, with strategic partners that manage hedge funds. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business. KKR has significant experience in the telecom sector, with its previous and current investments including United Group, Telxius, Deutchse Glasfaser and FiberCorp. KKR has a long-term presence and commitment to Spain having invested almost $6 billion since 2010 across different strategies, including current investments in PortAventura, Telxius, X-Elio, Alvic Group, Telepizza and MasterD. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

About Providence Equity Partners

Providence is a premier global private equity firm with more than $49 billion in capital under management. Providence pioneered a sector-focused approach to private equity investing with the vision that a dedicated team of industry experts could build exceptional companies of enduring value. Since the firm’s inception in 1989, Providence has invested in more than 200 companies and is a leading equity investment firm focused on the media, communications, education, software and services industries. Providence has a long history of investing in the telecommunications space in Europe and is currently a shareholder in both Masmovil (2016) and Bite (2016). The firm’s previous European telecommunications investments since 2005 include: Volia (2007), M7 Group (2007), MobileServ (2006), Kabel Deutschland (2006), Com Hem (2006), TDC (2006), and Ono (2005). Providence is headquartered in Providence, RI, and also has offices in New York and London. For more information, please visit www.provequity.com

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Middle East & Africa Seed Challenge

To support the visionary entrepreneurs of Africa’s booming tech ecosystem at earlier stages, we launched a special initiative addressing Seed companies in Cameroon, Egypt, Ivory Coast, Jordan, Morocco, Senegal, Tunisia in June 2020.

 

Today, we are very proud to announce the 7 Seed stage startups joining Orange Ventures community.

7Keema in Egypt: an e-health platform that enhances the accessibility and quality of nursing services

Chari.ma in Morocco: a market place for local businesses selling everyday goods

Dabchy in Tunisia: the first peer-to-peer secondhand fashion marketplace in Tunisia

Moja Ride in Côte d’Ivoire: a platform for transport operators that helps commuters access, book and pay for all available modes of transportation from a single mobile application

Waspito in Cameroon: an e-health platform that connects the African healthcare ecosystem via an application for telehealth services distribution

Back Office For Business (BOB) in Jordan: a comprehensive online sale and ordering solution to businesses, merchants and any online shop

SudPay in Senegal: a fintech proposing payment solutions for ticketing and local taxes

“Congratulations to the seven winners of the challenge, whom I am very happy to welcome to our community as we launch our new Seed activity” says Jérôme Berger, Chief Executive Officer, Orange Ventures. “Their diversity in terms of countries of origin, as well sectors of activity (consumer, e-health, B2B, fintech) proves the abundance of promising high quality projects on the continent”.

€670,000 will be invested as a result of this highly competitive selection process, subject to the usual conditions precedent.

Applications for Seed funding are now open here on permanent basis for tech driven seed stage startups operating in one of the 18 countries Orange operates in MEA region.

 

Stay tuned for more news on this subject. Follow us on Twitter or sign up to our Newsletter
Read the challenge results press release here in French and in English

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Divestment of Three Scandinavia’s telecom tower business and assets

Investor

2020-11-12 13:00 GMT+01

Patricia Industries, a part of Investor AB, has agreed to divest its 40 percent share of Three Scandinavia’s tower business and assets by:

  • Transferring its share of Three Scandinavia’s passive network infrastructure assets to CKH Networks, an operator of CK Hutchison’s European tower business with assets in Austria, Denmark, Ireland, Italy, Sweden and the United Kingdom.
  • Participating in the divestment of CKH Networks for EUR 10bn to Cellnex, the leading European independent operator of wireless telecommunications infrastructure. The consideration attributable to Patricia Industries will be 5 percent of the total consideration.

“This is a value creative transaction that will further strengthen our balance sheet,” says Investor AB President and CEO Johan Forssell.

“We believe this transaction creates value by finding a good, focused home for the tower assets, and allowing Three Scandinavia to focus on its core business of providing customers with high-quality mobile services. Three Scandinavia will continue investing in its network and services,” says Christian Cederholm, Co-head of Patricia Industries.

For the 12-month period ending September 30, 2020, Three Scandinavia’s reported EBITDA amounted to SEK 4,042m. Following the transaction, the company will establish service contracts with Cellnex for the utilization of the divested passive infrastructure.

The transaction is expected to close on a country by country basis, subject to regulatory approval, into 2021.

About Three Scandinavia
Three Scandinavia, founded in 2000, is a provider of mobile voice and broadband services in Sweden and Denmark. CK Hutchison owns 60 percent and Investor AB 40 percent of the company.  

About Patricia Industries
Patricia Industries is a long-term owner that invests in companies and works to develop each company to its full potential. Patricia Industries is a part of the industrial holding company Investor AB, whose main owner is the Wallenberg Foundations.

For further information:

Viveka Hirdman-Ryrberg, Head of Corporate Communication and Sustainability,
Phone +46 70 550 3500
viveka.hirdman-ryrberg@investorab.com

Magnus Dalhammar, Head of Investor Relations,
Phone +46 73 524 2130
magnus.dalhammar@investorab.com

Our press releases can be accessed at www.investorab.com

Investor, founded by the Wallenberg family in 1916, is an engaged owner of high quality global companies. We have a long-term investment perspective. Through board participation, as well as industrial experience, our network and financial strength, we work continuously to support our companies to remain or become best-in-class. Our holdings include, among others, ABB, Atlas Copco, Ericsson, Mölnlycke and SEB.

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EQT Infrastructure V to co-invest in Deutsche Glasfaser

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eqt

EQT Infrastructure V has signed an agreement to co-invest alongside EQT Infrastructure IV in Deutsche Glasfaser (“the Company”). Post the closing of the transaction, EQT Infrastructure V will hold a 12 percent stake in the Company.

After the acquisition of inexio late last year and of Deutsche Glasfaser (closed in May 2020), EQT Infrastructure IV combined the two companies into the new Deutsche Glasfaser Group. Following the merger of the two companies, additional growth and development opportunities have been identified. EQT Infrastructure V’s participation will help to capture these opportunities and secure support for the new Deutsche Glasfaser Group’s full potential plan.

Deutsche Glasfaser Group will continue to execute, and accelerate, the strategy announced in connection with the closing of the acquisition in May 2020. In short, the strategy includes growth of the Company by pursuing a large-scale deployment of “fiber-to-the-home” internet access in rural Germany.

The closing of the transaction is expected in Q4 2020. With the acquisition of a stake in Deutsche Glasfaser, EQT Infrastructure V is expected to be 10-15 percent invested based on its target fund size, and EQT Infrastructure IV is expected to be 80-85 percent invested.

Contact
EQT Press Office, press@eqtpartners.com

About EQT
EQT is a differentiated global investment organization with more than EUR 62 billion in raised capital and around EUR 40 billion in assets under management across 20 active funds. EQT funds have portfolio companies in Europe, Asia-Pacific and North America with total sales of more than EUR 27 billion and approximately 159,000 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 Deutsche Glasfaser
Deutsche Glasfaser was founded in 2011 and has since then been pioneering “fiber-to-the-home” roll-out in rural areas in Germany. Today the Company is Germany‘s leading “fiber-to-the-home” platform with a best-in-class roll-out machine, providing its fiber-based broadband to more than 1 million homes passed and employing more than 1,100 FTE.

More info: www.deutsche-glasfaser.de

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BGF to become cornerstone investor in Calnex Solutions’ IPO

BGF

BGF has today announced that it is investing in Calnex Solutions plc, an established provider of test and measurement solutions for the global telecommunications sector, as part of its proposed admission to trading on AIM. The admission is expected to take place on 5 October 2020.

Headquartered in Linlithgow and founded in 2006, Calnex designs and makes equipment that tests the performance of telecom network infrastructure for customers including BT, Ericsson, Nokia and Facebook. To date, Calnex has secured and delivered orders from over 600 customer sites in 68 countries across the world. The telecoms industry is currently experiencing unprecedented levels of change because of major trends including the migration of the mobile networks to 5G, the emergence of the Internet of Things and the shift to using cloud computing.

 

Calnex has a strong financial track record, delivering historical revenue CAGR since FY15 of approximately 16 per cent. The company is profitable and cash generative, with a record order backlog going into FY21 and a strong sales pipeline.

The funds raised through the IPO, along with the company’s existing cash resources, will allow Calnex to invest in business development and R&D resource, repay its existing debt facility and evaluate opportunities to acquire complementary technologies or businesses to accelerate the company’s growth.

Tommy Cook, Chief Executive Officer and founder of Calnex, said:

 “We are delighted to announce our proposed placing and admission to AIM and grateful for the support from our existing and new investors, such as BGF. The move onto the public markets will provide us with new capital, a raised profile and enhanced ability to execute on acquisitions, as we seek to capture an increased share of the growing market for telecoms test solutions.

Paddy Graham, head of BGF’s Edinburgh office said:

 “This investment into Calnex illustrates the strength of BGF’s regional presence and breadth of offering, with our Scottish investors working closely alongside BGF’s Quoted team in London to support the proposed listing. We have built a relationship with Tommy and the management team over a number of years and have watched the significant progress they have made, particularly around international expansion, R&D and successful bolt on acquisitions. We are very much looking forward to partnering with the company and supporting its growth ambitions.”

Paul Stevens, a member of BGF’s Quoted team said:

“We are delighted to be a cornerstone investor in Calnex at such an exciting time for the company. Having first met the business a number of years ago, BGF has followed the exceptional progress achieved by an innovative and entrepreneurial management team. The proposed listing and admission to AIM is a significant milestone for the company as it enters the next phase of its growth journey.”

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AccelerComm secures £5.8m Series A funding from IQ Capital, Bloc Ventures and IP Group to Supercharge 5G Communications

IQ Capital

University of Southampton spinout to use funding to scale IP technology business that significantly reduces latency and increases spectral efficiency

Southampton, 21st September 2020: AccelerComm – the Southampton University spinout supercharging 5G, satellite and other wireless communications with IP which increases spectrum efficiency and reduces latency – has raised £5.8m in Series A funding in a round led by IQ Capital alongside existing investors Bloc Ventures and the IP Group. The funding will be used to expand the current team, drive US and global expansion, and develop the technology further as demand for the company’s cutting-edge digital signal processing IP grows among mobile operators, telecoms equipment vendors, satellite operators and connected device manufacturers.

Low latency and high spectrum efficiency are crucial in protecting cellular and other radio networks from insufficient capacity, low data rates, sparse coverage and poor quality-of-service. Despite the roll-out of early 5G networks these factors remain an issue that risk stifling new revenue opportunities for operators from services such as gaming or VR, industrial IoT, autonomous vehicles or drone control.

AccelerComm’s cutting-edge channel coding IP is used to correct transmission errors in mobile, small cell and satellite communications caused by noise, interference and poor signal strength. This technology is optimised for the specific needs of cellular and satellite communications to provide market leading performance and efficiency. The product suite includes a complete channel coding IP solution that delivers reduced latency and power consumption for the most critical component of a 5G system, whilst meeting all the throughput and error correction targets. The AccelerComm IP packages can be quickly integrated and flexibly delivered for use in custom silicon (ASIC), programmable hardware (FPGA) or as software solutions, covering all use cases within the current standards.

Founded by Professor Rob Maunder at the University of Southampton in 2016, AccelerComm has established itself as a leader in the field of channel coding, also known as forward error correction, and is already working with Intel, Xilinx and National Instruments. Driven by a leadership team comprising executives and senior talent from ARM, Qualcomm and Ericsson, the company was recently named in the EE Times Silicon 100: Emerging Startups to Watch and continues to push the state-of-the-art in channel coding technology.

Tom Cronk, CEO of AccelerComm said: “From gaming and VR to automated robotic manufacturing lines and telemedicine, the use cases on the road to 5G appear almost limitless. But a critical roadblock remains – latency. For more than 15 years a research team led by Prof. Maunder, first at the University of Southampton and now at AccelerComm, has been working to solve the challenge to deliver on the 5G promise of a low latency, high throughput experience. We are delighted to have closed our Series A funding round, which will help us further develop and deploy our already market leading technology to help improve the efficiency of networks for many years to come.”

Max Bautin, Managing Partner at IQ Capital commented “We are very excited that we have been able to partner with AccelerComm in this round of funding. Squeezing ever more data into limited radio spectrum at faster and faster speeds is a huge challenge facing the telecoms industry. Improving the efficiency and reliability of data transfer has become critical to many industries – not just in cellular networks and IoT but also satellites, drones, fixed wireless internet and anything else that uses radio waves. AccelerComm’s track record of selling to globally very sophisticated blue-chip customers and deep IP are very impressive. The amazing founding team combining cutting edge academic and industry knowledge with ex ARM DNA gives AccelerComm incredible growth potential.”

David Leftley, CTO and co-founder of Bloc Ventures and Lee Thornton, Investment Director at IP Group said “Bloc and IP Group are delighted to be partnering with Max and the IQ Capital team on taking AccelerComm to the next level of scale. We believe we have the makings of something very special in AccelerComm, something we have not seen in the UK since the early days of ARM”.

AccelerComm were advised through the funding process by Acuity Advisors, UK.

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DIF Capital Partners acquires majority stake in UK fibre broadband operator

DIF

19 August 2020  |  London

DIF Capital Partners acquires majority stake in UK fibre broadband operator

DIF Capital Partners, through its DIF Core Infrastructure Fund II (“DIF CIF II”), is pleased to announce that it has completed the acquisition of a majority stake (54%) in 4th Utility, a fibre-to-the-premise (“FTTP”) infrastructure developer and internet service provider based in Hale, Manchester (UK).

4th Utility partners with residential and commercial landlords, property developers and house builders to design, install and upgrade their properties with state-of-the-art FTTP infrastructure.

4th Utility currently operates FTTP networks within a number of residential property developments in the North of England. DIF CIF II will provide significant capital to fund a large pipeline of opportunities generated by 4th Utility with their development partners throughout the UK.

“We are excited to partner with DIF Capital Partners who share our desire to invest in high-quality fibre infrastructure providing ultrafast internet access to properties across the UK. This long-term investment allows us to expand our current platform and provide ‘full fibre’ connectivity to a significant number of new customers” comments Tony Hughes, CEO of 4th Utility.

The transaction is the first investment for DIF CIF II in the UK and its third investment in the digital infrastructure sector following recent acquisitions in Canada and France. “We are pleased to bring our experience in digital infrastructure to support 4th Utility and their management team in delivering FTTP infrastructure investment to underserved properties in the UK” comments Willem Jansonius, Head of DIF CIF.

Please visit www.the4thutility.co.uk for further information.

About DIF Capital Partners

DIF Capital Partners is a leading global independent infrastructure fund manager, with €7.5 billion of assets under management across nine closed-end infrastructure funds and several co-investment vehicles. DIF Capital Partners invests in greenfield and operational infrastructure assets located primarily in Europe, the Americas and Australasia through two complementary strategies:

  • DIF CIF funds target equity investments in small to mid-sized infrastructure assets in the telecom, energy and transportation sectors.
  • DIF Infrastructure funds target equity investments in public-private partnerships (PPP/PFI/P3), concessions, utilities and renewable energy projects with long-term contracted or regulated income streams.

DIF has a team of over 145 professionals, based in nine offices located in Amsterdam (Schiphol), Frankfurt, London, Luxembourg, Madrid, Paris, Santiago, Sydney and Toronto. Please visit www.dif.eu for further information.

Contact: Thijs Verburg, IR & BD; t.verburg@dif.eu.

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Arkessa acquires Netherlands-based Sim Services

ECI

 

ECI portfolio company, Arkessa, announces today that it has continued its global expansion with the acquisition of Sim Services, a Netherlands-based connectivity services provider. The acquisition will allow Arkessa to strengthen its presence in the Netherlands and will help it reach its goal to ‘future proof’ customers’ connections to the Internet of Things.

Arkessa offers world-wide, world-class cellular connectivity services that make it easy to design, deploy and manage IoT devices securely, efficiently, and at scale, regardless of application or business model. Arkessa provides global coverage, competitive rates, and world-leading technical support, providing a single platform view for customers to order, manage, and connect their smart devices. With offices in the UK, Europe and the US, Arkessa serves multiple vertical sectors, both directly, and through strategic channel partnerships.

Sim Services is an independent provider of IoT connectivity services based out of the Netherlands.  Together with efficient support, short lines of communication and above all fast response times, Sim Services has always differentiated its services by providing the best solutions and support for its clients, with the goal of making IoT connectivity easy.

Andrew Orrock, CEO, Arkessa says: ‘We are delighted to welcome the Sim Services team to the Arkessa Group, and we very much look forward to working together as we continue to fuel our international growth in the IoT market. Rutger and Jeroen lead an expert team that share our values and determination to make IoT connectivity easy to deploy across all sectors, and their team has shown particular strength in delivering the highest level of service and tailored solutions throughout Europe. We welcome their dedication, customer focus, and drive for excellence.’

Rutger Stekelenburg, CEO, Sim Services, says: ‘Our whole team is so excited by this partnership. Arkessa is a natural fit for Sim Services culturally, and in enabling us to offer enhanced capabilities and broader services to our growing customer base. Arkessa offers a global footprint for cellular IoT, and their world-leading LPWAN and eUICC capabilities bring a whole new level of flexibility and coverage to the markets we currently serve, as well as opening up exciting new ones. The team is today as focused as ever on delivering great service to our customers, and we are delighted to join forces with such a dynamic and fast-moving team.

Paul McCreadie, Partner, ECI Partners, says: ‘Arkessa is well positioned to capture the considerable global growth projected in IoT managed services, with billions of connected devices being deployed in the coming decade. ECI is delighted to support Arkessa in making acquisitions which will have a direct positive impact on IoT customers looking for best-in-class connectivity services, anywhere in the world.’

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DIF Capital Partners acquires a stake in French digital infrastructure company IELO

DIF

DIF Capital Partners (“DIF”), through its DIF Core Infrastructure Fund II (“DIF CIF II”), is pleased to announce that it will invest in the French independent fiber optic operator IELO with the aim of contributing to its network roll-out in the coming years. DIF will enable IELO to build a nationwide footprint and become a leading fiber optic infrastructure operator in France, while remaining fully independent and a pure infrastructure player.

Resulting from the merger between IELO and LIAZO in 2016, the IELO group is positioned as a key player in the telecommunications sector in France. IELO’s fiber network is the highest quality urban optical network equipped with the latest technologies. It currently represents nearly 2,000 km of fiber, covering 30 metropolitan areas and connects more than 1,000 companies. Due to the significantly growing digitalisation requirements of companies the market is rapidly expanding. DIF’s capital injections will further accelerate the strong development of the fiber network of IELO in France.

As a long-term shareholder, DIF and IELO founders plan to invest together €90 million over the next few years to triple the size of IELO’s network by deploying more than 4,500 km of fiber (increasing it to 6,500 km total) in 95 French cities and economic zones. This acquisition perfectly fits CIF II’s strategy to invest in high-quality telecom infrastructure businesses.

Arthur Fernandez IELO co-founder and CEO said: “IELO is now at a turning point in its development and the long-term support provided by DIF represents a tremendous accelerator to achieve our ambitions of scaling up the strategy we have been successfully implementing in recent years. We intend to consolidate our position as a key independent wholesale operator in the fiber optics business with the aim of expanding our French client base to further gain market share.”

Thomas Vieillescazes, partner and head of DIF France added: “DIF has been investing heavily in the telecommunications sector in Europe and North America for several years, particularly in projects related to data centers and fiber optics. This investment is therefore in line with our strategy of investing in the high-potential digital infrastructure market, especially in the growing B2B business. We believe IELO, being a dedicated wholesale infrastructure provider, and the only one with a nationwide development strategy, is a perfect fit for DIF CIF II: it’s a pure infrastructure play with a greenfield component, for which DIF will bring to bear its longstanding experience in the French market. We have particular trust in IELO’s managers and their teams and are delighted to support the group in its development to become a key player in a growing market.”

About IELO

The IELO group markets enterprise access products through offers exclusively for telecom operators (the so-called “wholesale only” market). Operating its own optical cable network, IELO has an extensive coverage area covering some thirty of France’s largest conurbations, i.e. 161 municipalities in 23 departments. Since 2014, IELO has been implementing a strong strategy of rolling out its own network through an investment plan and a sustained pace of deployment, in order to extend its position in France. To find out more: www.ielo.com

About DIF Capital Partners

DIF Capital Partners is a leading global independent infrastructure fund manager, with €7.5 billion of assets under management across nine closed-end infrastructure funds and several co-investment vehicles. DIF Capital Partners invests in greenfield and operational infrastructure assets located primarily in Europe, the Americas and Australasia through two complementary strategies:

  • DIF CIF funds target equity investments in small to mid-sized infrastructure assets in the telecom, energy and transportation sectors.
  • DIF Infrastructure funds target equity investments in public-private partnerships (PPP/PFI/P3), concessions, utilities and renewable energy projects with long-term contracted or regulated income streams.

DIF has a team of over 140 professionals, based in nine offices located in Amsterdam (Schiphol), Frankfurt, London, Luxembourg, Madrid, Paris, Santiago, Sydney and Toronto. Please visit www.dif.eu for further information.

Contact: Thomas Vieillescazes, Partner; t.vieillescazes@dif.eu and Thijs Verburg, IR & BD; t.verburg@dif.eu.

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TIM and Ardian reach agreement over investment in INWIT S.p.A

Ardian

TIM S.p.A. (“TIM”) and Ardian, a leading global private investment company, have today reached an agreement for a consortium of institutional investors led by Ardian (“Consortium”) to invest in a newly formed holding company (the “Holding Company”) in which will be transferred a 30.2% share of the cocontrolling stake in Infrastructure Wireless Italiane SpA (“INWIT”), currently held by TIM.

TIM has also reached an agreement with a vehicle managed and advised by Canson Capital Partners (Guernsey) Limited (“Canson”) whereby Canson will acquire a direct stake in INWIT of up to 3% of its share capital, based on the same INWIT share price used in the sale to the Consortium.

On completion of the transaction, the Consortium will hold a 49% stake in the capital of the Holding Company. The transactions are based on an INWIT share price of €9.47 (ex dividend) with implied proceeds for TIM of €1.6 billion.

On completion of the transactions, TIM will have full and exclusive control of the Holding Company and, through it, will continue to exercise joint control over INWIT together with Vodafone Europe B.V. Consortium will have minority governance rights over the Holding Company and INWIT, with a view to protecting its investment and as per standard procedure in transactions of this nature.

The Holding Company will replace TIM, for the portion of INWIT shares held, in the existing shareholders’ agreement between TIM and Vodafone Europe B.V., under which TIM and Vodafone Europe B.V. jointly control INWIT.

Completion of the transaction is subject to a number of conditions being met by September 30, 2020, including authorisation under the Golden Power regulations and confirmation from Consob, Italy’s stock market regulator, of there being no requirement to make a mandatory offer.

 

About TIM

TIM is one of the top Information & Communication Technology companies in Europe and the market leader in Italy. It offers
its customers fixed and mobile telecommunications, internet, premium digital entertainment content – through TIMvision,
TIMmusic and TIMgames – and advanced cloud-based platforms. All with flexible and customisable offers to meet the
needs of families and businesses, on platforms accessible from a range of devices.
TIM is included in the major international sustainability indexes and is committed to becoming the leading telco in the
Eurozone in terms of sustainability and social responsibility.
The Group includes TIM Brasil, one of the leading players on the Brazilian market; Sparkle, an international carrier and one
of the top ten telecommunication service providers in the world, with a 530,000 km network extending across Europe, Africa
and Asia; Olivetti, which operates in key sectors such as the Internet of Things and offering cutting-edge hardwares and
softwares.

 

About ARDIAN

Ardian is a world-leading private investment house with assets of US$100bn managed or advised in Europe, the Americas
and Asia. The company is majority-owned by its employees. It keeps entrepreneurship at its heart and focuses on delivering
excellent investment performance to its global investor base.
Through its commitment to shared outcomes for all stakeholders, Ardian’s activities fuel individual, corporate and economic
growth around the world.
Holding close its core values of excellence, loyalty and entrepreneurship, Ardian maintains a truly global network, with more
than 670 employees working from fifteen offices across Europe (Frankfurt, Jersey, London, Luxembourg, Madrid, Milan, Paris
and Zurich), the Americas (New York, San Francisco and Santiago) and Asia (Beijing, Singapore, Tokyo and Seoul). It
manages funds on behalf of around 1,000 clients through five pillars of investment expertise: Fund of Funds, Direct Funds,
Infrastructure, Real Estate and Private Debt.

ardian.com

 

About Canson Capital Partners

Canson Capital Partners is a leading alternative capital-focused Advisory and Merchant Banking firm. Providing senior advice
and principal-to-principal engagement, the team seeks to connect sources of alternative capital with specific opportunities,
enabling clients to achieve their long-term strategic objectives. Since 2017, Canson Capital Partners has advised on private
equity-related transactions with an aggregate transaction value of over $54 billion. Canson Capital Partners is the trading
name of Canson Ltd, which is authorised and regulated by the Financial Conduct Authority.

cansoncp.com

Press contact

TIM Press Office

https://www.telecomitalia.com/media

+39 06 3688 2610

Press contact

Ardian – IMAGE BUILDING

Cristina Fossati, Luisella Murtas

ardian@imagebuilding.it Tel: +39 02 8901 1300

Press contact

Canson Capital Partners – Greenbrook Communications

Gina Bell / Matthew Goodman

canson@greenbrookpr.com

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