Mercurius exits GVG Glasfaser

Mercurius began exploring strategic options for the company in spring 2019, including a refinancing or a sale. A source familiar with the situation told Unquote that the highly competitive auction process saw interest from a number of European and international infrastructure funds.

Unquote understands that the GP stands to make substantial returns on the exit, with a double-digit money multiple from the sale. GVG was sold for an enterprise value of €75-100m.

The same source told Unquote that the company's management has reinvested with Palladio.

Mercurius acquired a 50% stake in GVG in 2014 via a capital increase, investing with one private individual and the company's management. In 2016, GVG acquired 2locate, a company that assists with the acquisition of contracts and tenders.

Under the ownership of Palladio, GVG plans to generate revenues of €110m by 2027 via a combination of growth strategies including the expansion of its marketing operations, the renewal of existing tenders and expansion of its client base.

Company
Founded in 2011, GVG manages projects for the implementation of broadband connections in underserved rural areas. Headquartered in Kiel, it employs 150 people and has provided connectivity services for 45,000 homes in Germany. The company won its first tender in 2014.

The company reported 2019 revenues of €13m, up from €6m in 2018 and €3m in 2017.

People
GVG Glasfaser – Michael Gotowy, Jörg Knöller (managing partners).

Advisers
Company – KPMG (M&A, corporate finance); Rautenberg Moritz & Co (M&A, corporate finance).

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