A Stonepeak fund backed by Mercer and Aware Super, along with Investment Management Corporation of Ontario (IMCO) and APG Asset Management, have participated in a €2.1bn equity recapitalisation of European fibre network infrastructure company euNetworks.
The equity commitments, together with a recent debt refinancing, willl support euNetworks’ ongoing expansion and strategic initiatives.
EuNetworks builds and invests in high-capacity fibre optic networks that serve European data centres and hubs. The company’s network includes 18 city-based networks and a long-haul network spanning 45,000km in 17 countries.
Stonepeak first acquired a majority interest in euNetworks in January 2018. In 2020, a Stonepeak fund and IMCO invested €250m following fundraising by euNetworks.
In May last year, Stonepeak said it was recapitalising euNetworks through the sale of the data centre and fibre business to a Stonepeak fund alongside strategic investments from Dutch pension fund manager APG and IMCO. Financial details were undisclosed.
Cyrus Gentry, MD at Stonepeak, said: “Since 2018, we have partnered with an industry leading platform in euNetworks, which is leading the way in sustainably developing the next generation of essential bandwidth infrastructure in Europe.
“We’d like to thank the entire management team for their significant contributions during this period – particularly Brady Rafuse and Paula Cogan, who have led the business through many phases of its evolution.”
Arjan Reinders, head of infrastructure Europe at APG, said: “We are thrilled to be entering into this partnership, on behalf of our pension fund client ABP and asset owner partners, and we are eager to work closely with the euNetworks team as they continue to develop and further their strategic vision.”
Matthew Mendes, MD, head of infrastructure at IMCO, said: “Alongside our co-shareholders, we look forward to continuing our partnership with euNetworks as they focus on building the next generation of bandwidth network in Europe, connecting more data centres and key sites with fibre, and leading the industry in sustainability practices.”
Mark Hector, head of infrastructure at Aware Super, said: “This is also a strong opportunity for us to further diversify our global digital infrastructure holdings into Europe.”
Kevin Dean, interim chief executive of euNetworks, said: “Our successful debt refinancing and equity recapitalisation underscores the robust value proposition and fundamental infrastructure delivered by euNetworks.
“We’ve had a fantastic partnership with Stonepeak and IMCO since 2018 along with our other investors, and we extend our gratitude to them for their unwavering support.
“The combination of Stonepeak, IMCO, APG, Mercer and Aware Super coming together as the new euNetworks represents a very strong opportunity for our customers, our people, our partners and the communities in which we operate.”
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