EQT buys Spanish cable operator IslaLink

The EQT Infrastructure II Fund has agreed to acquire a majority share in IslaLink Submarine Cables S.L., an independent and neutral operator of submarine fiber-optic cables in and around Spain.

The EQT Infrastructure II Fund has agreed to acquire a majority share in IslaLink Submarine Cables S.L., an independent and neutral operator of submarine fiber-optic cables in and around Spain.

IslaLink will be acquired, through a series of transactions, from an investment entity related to the Cube Infrastructure Fund and from the founders Alfonso Gajate and Ross Mullins. The founders and the management team will remain with the company.

Founded in 1999 by Alfonso Gajate and Ross Mullins, IslaLink deploys and operates submarine cables in underserved routes to provide telecom operators with the managed bandwidth services required for their retail operations. The company owns and operates one of the main fiber-optic cables connecting the Balearic Islands to mainland Spain and manages international IP-traffic for customers such as telecom operator Algérie Télécom. IslaLink is headquartered in Madrid, Spain and has around 20 employees.

"EQT has been monitoring the developments in the telecom fiber sector for a long time," said Daniel Pérez Wikmark, responsible for Spain and Portugal at EQT Partners, investment advisor to EQT Infrastructure II. "IslaLink is a well-run business with an excellent management team and strong partnership based relationships with its customers. We believe that data traffic over fiber-optic cables will continue to grow and see substantial value creation opportunities both in IslaLink’s existing business as well as through new expansion and growth initiatives."

The acquisition will also be EQT’s second investment in Spain, and their second investment in fiber-optic infrastructure. EQT acquired Swedish infrastructure firm IP-Only in May 2013, using the unit to consolidate the country’s local fiber-optic networks. EQT says it is looking for similar deals in the region.

The transaction is expected to close in the fourth quarter of 2014, subject to customary anti-trust approvals.

For more information on high-speed transmission systems and suppliers, visit the Lightwave Buyer’s Guide.


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