Cordiant Digital Infrastructure’s Speed Fibre acquires BT Communication Ireland wholesale and enterprise business

Cordiant Digital Infrastructure (CORD) has announced that a subsidiary of its portfolio company, Speed Fibre DAC, has entered into a put and call agreement to acquire the entire issued share capital of BT Communications Ireland Limited (BTCIL), the wholesale and enterprise business unit of BT Ireland, for an enterprise value of €22m. The acquisition is expected to enhance Speed Fibre’s ability to deliver advanced connectivity solutions, while achieving greater operational efficiencies and delivering a broader range of connectivity products and services for customers across Ireland. CORD says that the acquisition positions Speed Fibre for sustainable growth and aligns it with the company’s buy, build & grow model, through continued investment in its portfolio companies. Following completion, BT will remain a key customer of the combined business under 3-year agreements.

The transaction excludes BTCIL’s customer base of multinationals and financial institutions, the emergency call answering service, together with associated employees, which will be separately carved out, and the recently divested data centre business, thereby ensuring a focused operational business in Ireland for Speed Fibre post-closing.

The transaction is conditional upon the receipt of satisfactory regulatory approvals and completion of the carve out of BT’s global business in Ireland. It is expected to close later in 2025. The purchase consideration is subject to customary adjustments. The acquisition is expected to be financed by Speed Fibre’s existing cash resources, its senior revolving credit facility and cash from CORD.

Steven Marshall, CORD’s manager’s executive chairman and Benn Mikula, CEO of Cordiant Capital, commented “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.”

Who are BT Communications Ireland Limited?

BTCIL provides wholesale fibre and B2B connectivity, with approximately 3,400 km of managed fibre, and services around 400 customers in the telecoms, enterprise and government sectors across Ireland. CORD says that BTCIL generated core adjusted revenues of €57.6m in the 12 months ending 30 September 2024, and that pro-forma core adjusted revenues for the combined Speed Fibre and BTCIL group would have been €144.8m in the same period.

Comments from Peter McCarthy, CEO of Speed Fibre Group

“We are excited to welcome BT Communications Ireland into the Speed Fibre Group family. 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.”

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