Western European fiber-optic network services provider euNetworks Group Ltd. has raised €250 million of capital from existing investor the Investment Management Corporation of Ontario (IMCO) and a new commitment from a vehicle managed by Stonepeak Infrastructure Partners. Pro forma for the capital raise, Stonepeak will continue to own a majority stake in euNetworks (see "Stonepeak Infrastructure Partners closes euNetworks interest purchase"). euNetworks says it will use the money to further organic growth, participate in M&A, and other general corporate purposes.
euNetworks provides data center interconnect services between and within cities in Europe. The company owns and operates fiber-optic networks in 17 cities as well as differentiated long-haul infrastructure that spans 15 countries in Europe. The company has added new metro networks in Manchester, Milan, Madrid, and Vienna over the past few years. It also has added fiber to its metro and long-haul routes. Late last year, euNetworks completed the build out of internet infrastructure linking Dublin to London and Lowestoft (see "euNetworks’ Super Highway 1 links the UK and Ireland").
“Bandwidth and internet infrastructure underpins much of commerce and society and that impact continues to grow exponentially,” said Brady Rafuse, CEO of euNetworks. “We are laser focused on deploying capital to support the requirements of our customers, whose bandwidth requirements typically double every year. We are delighted to have secured additional investment from IMCO and Stonepeak and thank them for their support as we continue to build and deploy fiber network infrastructure in Europe.”
“When we made our initial investment, we recognized that euNetworks had distinguished itself in an increasingly connected society where certain backbone fiber networks underpin the digital infrastructure ecosystem,” said Brian McMullen, senior managing director of Stonepeak. “That remains the case today, and the team continue to do an exceptional job, delivering critical network infrastructure to euNetworks customers. There continues to be no shortage of compelling capital opportunities in Europe and we remain committed to building further on the unique position of euNetworks.”
“We seek to invest in world class infrastructure businesses globally and are excited to be supporting one with our investment in euNetworks as they continue growth of their European platform,” said Tim Formuziewich, managing director and global head of IMCO’s Infrastructure program, which has been an investor in euNetworks since 2018. “We see bandwidth demand growth being extremely differentiated to other value drivers of infrastructure assets that offers diversification to our clients’ portfolios. That growth profile combined with euNetworks’ leading position in the European bandwidth infrastructure market and track record of successful capital deployment presented a strong investment opportunity for IMCO.”
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