European fiber operator euNetworks (SIN:H23, news) completed a rights issue today in which it raised €72M. More than half of that money goes toward repaying shareholder loans in connection with the LambdaNet and TeraGate acquisitions, but it does leave them with something of a war chest for further M&A as well as to finance the capex required for their growth.
Where might they look for new acquisitions? Perhaps they could look to the north at IP-Only for expansion into Scandanavia, or to other regional providers in the former euro-one collaboration, or simply to tack on additional scale in their current markets as they did with LambdaNet and TeraGate. But for now I suppose they are still getting this summer's integrations fully integrated.
euNetworks is also a potential M&A target if the appetite for fiber grows on that side of the Atlantic to the same levels as on this side, something that seems inevitable yet unpredictable given the economic uncertainty. Prices seem cheaper for now, which could let euNetworks put together its own roll up in the meantime.
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