Saturday, November 25, 2017

euNetworks lands $500m for expansion through business acquisition

Company operates today dense fibre based metropolitan networks which link into more than 300 data centres across 15 countries.

euNetworks has entered into a definitive merger agreement with Stonepeak Infrastructure Partners in which the later will acquire a majority interest in the networks provider.

Under the same transaction, euNetworks will also cash in up to $500m of committed growth capital for both organic and inorganic development.

Stonepeak said in a company statement that the investment represents an ideal platform to enter the bandwidth infrastructure market.

euNetworks’ portfolio includes a fully owned and operated dense fibre based metropolitan networks in 14 cites, connected by an intercity backbone covering 49 cities in 15 countries.

These networks directly connect into over 300 data centres and more than 1,300 further cell towers, cable landing stations and enterprise buildings.

Brady Rafuse [pictured in main image] is to remain the Chief Executive Officer of the company and the existing euNetworks investors, including Columbia Capital and Greenspring Associates, will continue to hold a material interest in the company’s new capital structure.

The transaction, which is only subject to customary regulatory approvals, is expected to close in the coming months. euNetworks was advised by Barclays Bank PLC, acting through its Investment Bank and J.P. Morgan represented Stonepeak Infrastructure Partners.

CEO Rafuse said: “This agreement offers Stonepeak the platform to enter the bandwidth market, and it provides euNetworks with a fantastic opportunity to accelerate growth and deliver more for our customers. We have demonstrated our ability to remain focused on what we do well, while investing in and developing our network footprint.

“But we’ve seen the nature of the opportunity continue to grow exponentially and see Stonepeak as the right partner for the next phase of our growth. We are genuinely excited at what this transaction and partnership offers our customers, our people and our existing investors.”

Trent Vichie, Co-Founder and Co-CEO of Stonepeak, said: “euNetworks has done an exceptional job delivering critical bandwidth infrastructure to its customers in a market characterized by rapid growth in data traffic and increasingly complex connectivity requirements. We are delighted to partner with Brady and the euNetworks team in their next phase of growth.”