Cordiant Digital Infrastructure has completed its purchase of Speed Fibre DAC. This improves the fund’s portfolio diversification by asset class and geography, with the addition of wholesale and retail fibre services in Ireland.
Cordiant Digital says that S”peed Fibre is a cash generative enterprise with a diversified base of blue-chip customers. The Group represents a leading data delivery platform in a market with significant ongoing demand growth and development potential, in particular in the data centre sector. Speed Fibre’s network is at the heart of Ireland’s digital framework. The country is among the most digitally enabled economies in the European Union, and the continuing buildout of digital technologies and network infrastructure is a cornerstone of the Irish Government’s economic, social and environmental policies.”
The equity consideration for the acquisition is €97.2m, based on a total enterprise value of €190.5m. The equity consideration will be funded by €67.6m in cash and €29.6m through a vendor loan note with an initial interest rate of 6% and a maturity of four years. Following the acquisition of Speed Fibre, Cordiant Digital’s portfolio would have aggregate pro forma annual revenues to 31 March 2023 of £266m, aggregate pro forma, normalised annual EBITDA of £124m, and pro forma aggregate net gearing of approximately 38%.
The company says that its dividend is covered 4.0x by earnings and 1.8x based on adjusted funds from operations.
CORD : Cordiant Digital completes Speed Fibre deal