The pan-European fiber and network services provider euNetworks is going to be changing hands this winter. Stonepeak Infrastructure Partners has signed a definitive merger agreement to acquire a majority interest in the company.
The deal will load euNetworks war chest with $500M in growth capital for the next phase of its development. The company has been steadily expanding both the metro depth and the longhaul reach of its network in response to customer demand, and keeping up that pace requires full coffers to keep the capex flowing.
Of course, $500M is far more than they need for that, which suggests that the inorganic side of euNetworks' expansion plans could be quite interesting in the coming months. There are many potential targets, but one recent bit of information springs to mind.
A couple weeks ago when the rumor that Interoute might be looking for a suitor emerged, I suggested euNetworks could be a buyer if its private equity owners decided to step to the plate. Bringing in Stonepeak at this time is probably not a total coincidence. In fact, it suggests an opportunity has been noted and prepared for.
euNetworks' existing private equity owners will be staying on, including Columbia Capital and Greenspring Associates. And the company's current management team will stay on under CEO Brady Rafuse, who we had on here just a few months ago.