Apax is in advanced discussions to acquire Warburg Pincus’ interest in Dutch telecoms operator Odido, potentially taking sole private equity ownership of the business at a valuation of about €6.5bn, according to a report by the Financial Times.
An agreement could be reached within days, according to people familiar with the situation, although discussions remain ongoing and terms could still change.
The potential transaction comes several months after Apax and Warburg Pincus abandoned plans to float Odido, citing instability in European equity markets. The proposed listing had been expected to rank among the region’s largest initial public offerings of the year.
Odido, formerly known as T-Mobile Netherlands, generated almost €2.4bn of revenue last year. The company has more than 7.5 million customers and is one of the Netherlands’ leading providers of fibre broadband services.
Apax and Warburg Pincus acquired the business from Deutsche Telekom and Tele2 in 2022 for €5.1bn and have since invested in expanding its position in the Dutch telecommunications market, particularly in broadband, where it competes with KPN and VodafoneZiggo.
The ownership structure was subsequently put under further pressure following a cyber attack that resulted in the online disclosure of personal information belonging to millions of Odido customers. The incident prompted a public apology from the company’s chief executive.
The private equity owners have also received interest from potential buyers, including Saudi Arabia’s state-backed telecommunications group STC, according to people familiar with the matter.
For Warburg Pincus, a sale to Apax would provide an exit from an investment made four years ago, while leaving Apax with full control of a business it already owns alongside its fellow sponsor.
The potential deal would also give Apax continued exposure to the Dutch broadband market, where analysts see further scope for Odido to increase its market share.
Warburg Pincus, Apax, Odido and STC reportedly declined to comment on the discussions.
