24th Aug 2023 08:33
(Alliance News) - Cordiant Digital Infrastructure Ltd on Thursday said it has agreed to buy Speed Fibre DAC from the Irish Infrastructure Fund for an enterprise value of EUR190.5 million.
Cordiant Digital Infrastructure is a specialist digital infrastructure investor managed by Cordiant Capital Inc. Speed Fibre operates 5,400 kilometres of owned and leased broadband fibre and wireless backhaul across Ireland. Wireless backhaul uses wireless communications to connect wired data networks.
The network is open access. Speed Fibre provides dark fibre, wavelength and ethernet services to a telecommunications carriers, internet service providers, corporations, and the Irish government.
Speed Fibre recorded earnings before interest, tax, depreciation and amortisation of EUR23 million on revenue of EUR80 million in 2022.
The equity portion of the price tag is EUR97 million, which Cordiant Digital Infrastructure said it will fund through EUR68 million in cash and a EUR29 million vendor loan note. This has an initial interest rate of 6% and a term of four years.
Speed Fibre had EUR111 million in gross debt back in December, maturing in 2029, balanced by EUR19 million in cash.
Cordiant Digital Infrastructure shares were up 0.2% to 71.31 pence in London early Thursday. The stock is down 33% over the past 12 months.
By Tom Waite, Alliance News editor
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