Aleph Capital Partners LLP (“Aleph Capital”) and Crestview Partners (“Crestview”) have today announced that funds under their control have agreed to acquire a 30% stake in Interoute Communications Ltd (“Interoute”) from Emirates International Telecommunications LLC (“EIT”). Terms of the transaction were not disclosed. Completion is expected to take place by end of April 2015.
Headquartered in London, Interoute is an integrated network and cloud computing company that owns and operates one of the largest next generation networks and cloud computing platforms across Europe. It serves both the enterprise and carrier markets through its extensive owned network of fibre and data centres, and through its full range of infrastructure, transport, connectivity, communications and computing services. Interoute expects to strongly benefit in the coming years both from enterprises’ rapid adoption of networked cloud computing and the continued explosion in bandwidth usage throughout Europe. With the support of its existing and new shareholders, it intends to participate proactively in the consolidation of the cloud and fibre markets in Europe and beyond.
Interoute is privately held. As part of this investment, Aleph Capital and Crestview will join Interoute’s majority shareholder, the Sandoz Family Foundation, as shareholders in Interoute.
Gareth Williams, CEO of Interoute, said: “We look forward to Interoute’s next chapter in partnership with Aleph and Crestview. I have had the opportunity of getting to know both of our new shareholders well and I am confident that their extensive experience as investors in the IT and telecoms sector will benefit our growth strategy. Interoute’s management team and its shareholders are fully aligned on the strategic ambitions and continued development of the company.”
Gabriel Prêtre, Chairman of Interoute and Chief Financial Officer at the Sandoz Family Foundation, said: “I would like to thank EIT for the work that it has done in helping set Interoute on its current growth path, and for its continued support over the last ten years. Today marks an exciting day for Interoute. We welcome Aleph Capital and Crestview as new shareholders as we jointly seek to expand the Interoute cloud and network, and help consolidate the European marketplace.”
Hugues Lepic, CEO of Aleph Capital, said: “We are very excited about Interoute’s prospects in this new phase of its development. We are delighted to be partners with both the Sandoz Family Foundation and the Interoute management team. This transaction is a clear example of how our flexible investment philosophy and our strategic alliance with Crestview allow us to partner with high quality management teams and stakeholders to deliver growth in enterprise value in the companies we invest in. We look forward to being value-added partners to one of the leading European fibre and cloud infrastructure and service companies.”
Brian Cassidy, a Partner at Crestview Partners, said: “Gareth Williams and the team have done a tremendous job managing Interoute, and the company is poised to capitalise on the increasing demand for bandwidth and cloud-based services. We see a significant consolidation opportunity in the fibre and cloud markets in Europe and Interoute is in a strong position to participate in it.”