Antin Infrastructure Partners plans to buy Eurofiber Group, adding the Dutch supplier of fiber-optic telecommunications services to its assets.
Paris-based Antin will pay 875 million euros ($985 million) to Doughty Hanson & Co Ltd. and Reggeborgh Groep for all the shares of Maarssen-based Eurofiber, the Dutch company said in a statement on its website on Tuesday. Eurofiber provides fiber and optical connections to companies ranging from health care to media in the Netherlands, Belgium and Germany.
“We have long identified optical fiber networks as a highly attractive asset class,” Stephane Ifker, partner at Antin, said in the statement. “It exhibits very robust infrastructure characteristics as it provides an essential service in hosting increasing data flows.”
Demand for data traffic and storage is increasing, driving the appetite for companies that service this industry with their fiber optic networks and pushing their valuations.
“There’s an enormous demand for additional data capacity, so valuations for those sort of companies are pretty good right now,” Marc Hesselink, an analyst for ABN Amro Bank NV, said by telephone. “It’s about a business to business relationship, the more scale the better it is as you try to leverage your existing network as much as possible.”
Eurofiber will continue to act independently with its strategy maintained under the current management, the company said in the statement. The companies said that they expect to complete the transaction by the end of May.
(A previous version of this story was corrected to show the origin of the news release was from Eurofiber.)