The new Board commits to accelerating acquisitions as Interoute targets €1bn in revenues
London, 30 March 2015 – Interoute, owner operator of Europe’s largest cloud services platform, has announced that Aleph Capital Partners and Crestview Partners have entered into a share purchase agreement with minority shareholder Emirates International Telecommunications (EIT) with respect to the acquisition of a 30% stake in Interoute’s business. Completion is expected to occur by the end of April 2015. Interoute anticipates that the backing of the new investors will enable the company to make more acquisitions and build its business in the UK, USA and across Europe.
Since 2002 Interoute has been building, operating and extending the largest cloud technology platform in Europe. It now encompasses over 67,000 km of lit fibre, 12 data centres and 31 collocation centres, with connections to 195 additional third-party data centres. The company employs 1,450 people worldwide.
Gareth Williams, CEO Interoute, said “Interoute seeks to more than double its revenues in the next 5 years, underpinned by demand for its enterprise networked cloud services. Adding new markets, capabilities and additional customers to experience these services will be the focus of the acquisitions. We are thrilled to have found ambitious tech-savvy partners who want to help us reach that goal”.
Hugues Lepic, CEO of Aleph Capital, said “This transaction is a good example of how Aleph Capital aims to partner with high-quality management teams and stakeholders to unlock value growth. Interoute is already a leader in the European fibre and cloud infrastructure market, but with our help there are opportunities for the company to enter a new and exciting phase. We are looking forward to working closely with the Interoute management team and the Sandoz Family Foundation to achieve this.”
Brian Cassidy, a Partner at Crestview Partners, said “Gareth Williams and his team have done a tremendous job managing Interoute, and the company is poised to capitalise on both the increasing demand for bandwidth and cloud-based services. We see a lot of consolidation opportunities in the fibre and cloud markets in Europe, which Interoute should participate in.”
Interoute Communications Limited is the owner operator of Europe’s largest cloud services platform, which encompasses over 67,000 km of lit fibre, 12 data centres, 13 Virtual Data Centres and 31 collocation centres, with connections to 195 additional third-party data centres across Europe. Its full-service Unified ICT platform serves international enterprises, as well as every major European telecommunications incumbent and the major operators of North America, East and South Asia, governments and universities. These organizations find Interoute the ideal partner for computing, connectivity and communications and developing new services. Its Unified ICT strategy has proved attractive to enterprises looking for a scalable, secure and unconstrained platform on which they can build their voice, video, computing and data services, as well as service providers in need of high capacity international data transit and infrastructure. With established operations throughout mainland Europe, North America and Dubai, Interoute also owns and operates dense city networks throughout Europe’s major business centres. www.interoute.com
About Aleph Capital
Aleph Capital Partners is an independent investment firm based in London. Its strategy is focused on providing capital to sound businesses that are experiencing complex situations. Aleph Capital Partners operates as a long-term partner, working closely with management teams, shareholders and other stakeholders to deploy capital to deliver value growth over a period of years. Its approach to financing and governance is entirely bespoke, adapted to the specific situation of each opportunity. The firm focuses on investment in companies in Western Europe (including the UK). It has a typical holding period of two to seven years and looks for companies where it can provide a capital commitment ranging between €75 million and €400 million. Aleph Capital was founded in 2013 by Hugues Lepic, formerly Head of Merchant Banking and Head of the Principal Investment Area (PIA) in EMEA at Goldman Sachs.
About Crestview Partners
Founded in 2004, Crestview Partners is a value-oriented private equity firm based in New York with approximately $7 billion of capital under management. The firm is led by former partners and leaders in the private equity business and senior management of Goldman Sachs and Morgan Stanley. Crestview’s investment strategy is focused in the media, financial services, healthcare and energy sectors.