EQT transfers IP-Only to infra fund

EQT made the divestment from its EQT Mid Market and EQT Mid Market Europe funds, which have backed the company since 2013. The new investment will be made from the €9bn EQT Infrastructure IV.

The enterprise value of SEK 18.25bn does not include the potential earn-out of up to SEK 1bn.

The GP did not shortlist any first-round bidders for the asset according to a report by Unquote sister publication Inframation, published on 21 May. The report said EQT was considering selling the business to an infrastructure fund it also managed and may have launched a sale in order to determine the market's valuation of the asset.

EQT said the transaction was signed following a competitive auction process with both industry and financial buyers.

Under EQT Mid Market's ownership, IP-Only's revenues have increased from SEK 425m to SEK 1.9bn, and adjusted EBITDA has grown from SEK 180m to SEK 930m. Its consolidation strategy included 15 private add-on acquisitions and two buyouts from Stockholm Stock Exchange.

The Swedish government has targeted 98% broadband coverage by 2025, which IP-Only said it will continue to support.

Previous funding
EQT acquired 91% of IP-Only from the company's three largest shareholders for around SEK 680m in 2013.

Company
Founded in 1999 and based in Uppsala, IP-Only is a Swedish fibre infrastructure provider to the B2B and B2C segments. It is the second largest fibre infrastructure provider in the Swedish fibre-to-the-home market and the operator with most focus on the rural parts of Sweden.

People
EQT Mid Market – Johan Dettel (investment adviser).
IP-Only – Frida Westerberg (CEO).

Advisers
Vendor – JP Morgan (corporate finance); SEB (corporate finance); White & Case (legal).

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