European Fiber Carrier Hires Financial Advisers to Explore $2 Billion SaleBy
Credit Suisse, Evercore helping U.K. company to find a buyer
Interoute owns one of the largest pan-European fiber networks
Interoute Communications Ltd, a pan-European fiber carrier and cloud-services operator controlled by the Sandoz Family Foundation, has hired financial advisers to evaluate a sale, according to people with knowledge of the matter.
Interoute is working with Credit Suisse and Evercore Inc. to explore a deal dubbed "Project Nitro," said the people, asking not to be identified because the talks are private. The London-based company could be valued in a range of seven to 10 times earnings before interest, tax, depreciation and amortization, or as much as 1.65 billion euros ($1.95 billion), the people said.
The company owns and operates one of the largest independent European grids with 72,400 fiber-route kilometers spanning 29 countries, according to a document viewed by Bloomberg News.
Representatives for Interoute, Credit Suisse and Evercore declined to comment.
Interoute, whose clients include BT Group Plc, Vodafone Group Plc and AT&T Inc., reported 2016 revenue of 727 million euros and Ebitda of 147 million euros. The company had Ebitda of 165 million euros for the 12 months ending in the second quarter.
The Sandoz Family Foundation owns 70 percent of Interoute, while Aleph Capital and Crestview Partners together own 30 percent. In 2015 Interoute completed the acquisition of U.K. phone carrier Easynet Ltd, its largest purchase to date, adding revenue of about 240 million euros.