Speed Fibre DAC, a Cordiant Digital Infrastructure portfolio company, is acquiring BT Ireland’s wholesale and enterprise business for €22m.
Cordiant Digital said Speed Fibre has entered into a put-and-call agreement to acquire the entire issued share capital of BT Communications Ireland Limited (BTCIL), a wholesale fibre and B2B connectivity provider with approximately 3,400km of fibre and 400 customers in Ireland’s telecom, enterprise and government sectors.
The acquisition is expected to be funded through Speed Fibre’s existing cash reserves, its senior revolving credit facility and cash from Cordiant Digital.
The transaction is expected to integrate BTCIL’s capabilities and customer base with Speed Fibre’s operations.
Cordiant Digital said the deal excludes certain BTCIL assets and operations, including its multinational and financial institution customer base, the emergency call answering service and related employees and the previously divested data centre business.
Once the acquisition is completed, BT will remain a customer of the combined business under three-year agreements.
In a joint statement, Steven Marshall, executive chairman of Cordiant Digital’s infrastructure management arm, and Benn Mikula, CEO of Cordiant Capital, said: “This transaction is an important addition to our Speed Fibre platform, representing a significant step in our strategy to build scale in key digital markets such as Ireland.
“BT Communications Ireland’s capabilities complement Speed Fibre’s existing operations, enhance our ability to support the growing connectivity needs of Irish businesses and align with CORD’s investment strategy.”
Peter McCarthy, CEO of Speed Fibre Group, said: “This acquisition, when completed, will enable us to deliver even greater value to our customers by expanding our range of connectivity solutions.
“It is a positive development for the Irish market, that we expect to provide us with the scale and capabilities to better serve our growing customer base.”
Shay Walsh, managing director at BT Ireland, said: “We have transformed our operations in Ireland over the past eighteen months to position our various business units for future growth. This new chapter will see BT focusing on multinationals and large organisations in Ireland with Speed Fibre as its wholesale network and national services partner.
“Through this transaction, I am confident that the complementary strengths of both entities will unlock new opportunities, drive innovation, and sustain long-term growth in the Irish telecommunications market.”
To read the latest IPE Real Assets magazine click here.
