More Fiber M&A: Private Equity Buys Eurofiber

April 3rd, 2012 by · 1 Comment

Reports from Europe this morning say that private equity is moving in on one of the largest independent fiber operators in the Netherlands. Doughty Hanson has apparently agreed to buy a majority stake in Eurofiber from the Wessel family’s Reggeborgh investment vehicle.  Reggeborgh will stay on as a minority stakeholder.

Eurofiber operates 12,000km of intercity and metro fiber that connects up about 4,500 unique locations – which I assume correlates to on-net buildings and towers and such. That’s a heck of lot of fiber considering the fact that it’s all within a country that is physically the size of the state of Maryland. In fact, it’s extensive enough that Eurofiber can compete directly for major national contracts, and already claims to carry 25% of all Dutch internet traffic.

Financial details have not been disclosed, and the transaction is expected to close in May. I have been expecting European fiber assets to start getting more attention this year, although I haven’t been looking specifically at Eurofiber mostly because I know little about the company.  The change in ownership structure will probably help boost the company’s expansion opportunities via additional investment.

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Categories: Mergers and Acquisitions · Metro fiber

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  • schmuckinsurance says:

    This was sold again at E875mn. From what I have read, seems like 13x ebitda, anyone have insight on the multiple?

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