Interoute jumps on the acquisition trail with new investors
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 “We are very excited about Interoute’s prospects in this new phase of its development. We are delighted to be partners with both the Sandoz Family Foundation and the Interoute management team. This transaction is a clear example of how our flexible investment philosophy and our strategic alliance with Crestview allow us to partner with high quality management teams and stakeholders to deliver growth in enterprise value in the companies we invest in. We look forward to being value-added partners to one of the leading European fibre and cloud infrastructure and service companies.”
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.”
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About Aleph Capital
Aleph Capital Partners LLP is an independent investment firm based in London. The firm focusses on capital investments in European-based companies. It operates as a long-term capital partner of the businesses it invests in. Aleph Capital works closely with management teams, shareholders and other stakeholders to create adaptable capital solutions aimed at delivering growth in enterprise value over a period of years. Its approach to capital commitment and governance is entirely bespoke, adapted to the specific situation of each company it invests in. Aleph Capital focuses on investments in companies where its capital commitment can range between €100 million and €400 million. It has a typical holding period of three to seven years. Aleph Capital was founded in 2013 by Hugues Lepic, formerly Head of the Merchant Banking Division and Head of the Principal Investment Area (PIA) of Goldman Sachs in EMEA.
About Crestview Partners
Founded in 2004, Crestview Partners is a value-oriented private equity firm focused on the middle market. The firm is based in New York and manages funds with over $7 billion of aggregate capital commitments. The firm is led by a group of partners who have complementary experience and distinguished backgrounds in private equity, finance, operations and management. Crestview’s senior investment professionals primarily focus on sourcing and managing investments in each of the specialty areas of the firm: media, energy, financial services, healthcare and industrials