Speed Fibre DAC to acquire wholesale and enterprise business of BT Ireland for €22 million

LONDON: Cordiant Digital’s portfolio company, Speed Fibre DAC has entered into a put and call agreement to acquire the entire issued share capital of BT Communications Ireland Limited (BTCIL), the wholesale and enterprise business unit of BT Ireland, for an enterprise value of €22 million.

The acquisition is expected to enhance Speed Fibre’s ability to deliver advanced connectivity solutions through the integration of BTCIL’s complementary capabilities and domestic customer base.

By combining resources, Speed Fibre expects to achieve greater operational efficiencies and deliver a broader range of connectivity products and services for customers across Ireland. This transaction positions Speed Fibre for sustainable growth and aligns with the Company’s Buy, Build & Grow model, through continued investment in its portfolio companies.

BTCIL provides wholesale fibre and B2B connectivity, with c.3,400 km of managed fibre, and services c.400 customers in the telecoms, enterprise and government sectors across Ireland.

BTCIL generated core adjusted revenues of €57.6 million in the 12 months ending 30 September 2024. Pro forma core adjusted revenues for the combined Speed Fibre and BTCIL group would have been €144.8 million in the same period.

The transaction excludes BTCIL’s customer base of multinationals and financial institutions, the emergency call answering service, together with associated employees, which will be separately carved out, and the recently divested data centre business, thereby ensuring a focused operational business in Ireland for Speed Fibre post-closing.

Following completion, BT will remain a key customer of the combined business under 3-year agreements.

The transaction is conditional upon the receipt of satisfactory regulatory approvals and completion of the carve out of BT’s global business in Ireland. It is expected to close later in 2025.

The purchase consideration is subject to customary adjustments. The acquisition is expected to be financed by Speed Fibre’s existing cash resources, its senior revolving credit facility and cash from CORD.

Steven Marshall, Executive Chairman of Cordiant Digital Infrastructure Management, and Benn Mikula, CEO of Cordiant Capital, said: “This transaction is an important addition to our Speed Fibre platform, representing a significant step in our strategy to build scale in key digital markets such as Ireland. BT Communications Ireland’s capabilities complement Speed Fibre’s existing operations, enhance our ability to support the growing connectivity needs of Irish businesses and align with CORD’s investment strategy.”

Peter McCarthy, CEO, Speed Fibre Group, said: “We are excited to welcome BT Communications Ireland into the Speed Fibre Group family. This acquisition, when completed, will enable us to deliver even greater value to our customers by expanding our range of connectivity solutions. It is a positive development for the Irish market, that we expect to provide us with the scale and capabilities to better serve our growing customer base.”

Shay Walsh, Managing Director, BT Ireland, said: “We have transformed our operations in Ireland over the past eighteen months to position our various business units for future growth. This new chapter will see BT focusing on multinationals and large organisations in Ireland with Speed Fibre as its wholesale network and national services partner. Through this transaction, I am confident that the complementary strengths of both entities will unlock new opportunities, drive innovation, and sustain long-term growth in the Irish telecommunications market”.