The EQT Infrastructure II Fund has agreed to acquire a majority shareholding of 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.
IslaLink was 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.
Daniel Pérez Wikmark, responsible for Spain and Portugal at EQT Partners, Investment Advisor to EQT Infrastructure II, commented:
EQT has been monitoring the developments in the telecom fiber sector for a long time and is excited about the acquisition of IslaLink. 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 we are exploring additional investment opportunities both in the Spanish and Portuguese markets.
Alfonso Gajate and Ross Mullins, founders of IslaLink, stated:
In EQT, we have found an owner with the willingness, experience and financial capacity to support IslaLink's development. They have a growth focussed strategy, a responsible and hands-on ownership approach and will provide us with access to skilled Industrial Advisors through their global network of specialists. We look forward to working together with EQT and capture future growth potentials for IslaLink.
Henri Piganeau, Managing Partner at Cube, added:
After seven years of continuous growth and development of the company, we made the decision with the founders to let IslaLink open a new chapter to support its development. We are confident that under EQT control, IslaLink will continue its growth for the satisfaction of its clients.
Closing of the transaction is expected in the fourth quarter of 2014, subject to customary anti-trust approvals.