The pan-European bandwidth infrastructure company euNetworks now has deeper pockets for growth. Yesterday they announced the injection of another €250M in capital from the Investment Management Corporation of Ontario and their current majority owners at Stonepeak Infrastructure Partners.
euNetworks plans to put the money toward ongoing investments in the company's fiber infrastructure. The company has been having no problem finding places to deploy resources lately, having added metro networks in markets like Manchester, Milan, Madrid, and Vienna and invested in new longhaul and subsea assets like Super Highway 1 and the Rockabill cable across the North Irish Sea.
That being said, the timing is also potentially interesting from an inorganic perspective. When Stonepeak first invested a couple years ago, it was when Interoute was said to be up for sale. In the end GTT bought Interoute, but is now well along the path of selling Interoute's infrastructure business and at the same moment euNetworks is raising funds for expansion.
That euNetworks might be at that table looking to make a deal wouldn't surprise anyone of course, as they are an obvious potential buyer. Those assets would be an even better fit now than two years ago, as they would have fewer complications from what euNetworks would likely view as non-core business. That being said, euNetworks shouldn't have any trouble finding places to invest the money on an organic basisas the industry continues to roll out fiber infrastructure worldwide in support of 5G and other new technologies.
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