PE Tech Report

NEWSLETTER

Like this article?

Sign up to our free newsletter

KKR to acquire Telxius stake

KKR is to acquire a stake of up to 40 per cent in Telxius, a critical telecom infrastructure owner and service provider in Europe and Americas.

The deal implies an enterprise value of EUR3.678 billion and is subject to the customary closing conditions.
 
Telxius owns and operates a large portfolio of nearly 16,000 telecommunications towers in five countries. It also manages an international network with approximately 65,000 kilometres of submarine fibre optic cables, of which around 31,000 kilometres are owned by Telxius. Both business units benefit from growth in their core markets, as the use of mobile data and the demand for reliable internet connectivity continue to grow rapidly, particularly in Spain and Latin America.
 
KKR will partner with Telefonica to continue to grow and develop Telxius' portfolio, both by optimising existing assets and investing for growth, including the development of its cable network in Europe and across the Americas through two new submarine cables, one connecting the US and Brazil; the second connecting the US to Europe.
 
Following the deal, Telefonica will remain the anchor client for Telxius’ tower and cable businesses.
 
Jesus Olmos, member and global co-head of infrastructure and head of Spain at KKR, says: "The combination of Telefonica's industrial expertise and KKR's financial and operational support will help Telxius as it continues to scale and grow. We are confident that the exploding demand for mobile data, driven by the rise in 4k and virtual reality content, together with the need for reliable internet infrastructure will help drive strong growth in the business."
 
Guillermo Ansaldo, chairman of Telxius, says: “Our vision for Telxius is to capitalise on the exponential increase in data traffic forecast for the coming years by offering a first-class network in Europe and the Americas. We are delighted to have KKR on board as a long-term investment partner. We believe their solid track-record on the infrastructure business will help us achieving our common goals.”
 
The investment will be funded primarily from KKR's USD3.1 billion second global infrastructure fund.

Like this article? Sign up to our free newsletter

MOST POPULAR

FURTHER READING

Featured