Stirling Square exits Metroweb

F2i is believed to have secured an 87.5% stake in the business, with Intesa Sanpaolo holding the remainder of the shares.

The winning consortium had to fend off competition from several rivals: AXA Private Equity filed a bid for the asset, while trade buyers such as Vodafone and Wind Telecomunicazioni SpA were also reported to be circling the company. Lazard was mandated to run the auction process.

Previous funding
Stirling acquired Metroweb from Milan-based utilities provider AEM in 2006, an MBI valued at around €232m. AEM retained a 23.5% stake in the business.

The private equity firm stated that since then, significant capital investment increased the size of the network, moved access from curbs to buildings themselves and improved service quality. Milan now has the highest broadband penetration in Italy with 58% of businesses and 52% of residences accessing the network.

Under Stirling ownership, trunover and EBITDA have grown by 25% and 50% respectively. The private equity firm declined to comment on the return multiple generated on the exit.

Company
Established in 1997, Milan-based Metroweb provides dark fibre connectivity to telecoms operators, corporations, governmental institutions and digital and multimedia distributors. The Metroweb network consists of 7,254 km of cables, corresponding to approximately 324,000 km of fibre and 3,272 km of infrastructure and connections to business and residential sites.

Metroweb is reported to have posted a €52m turnover and €42m EBITDA for 2010. It currently employs 36 people

People
Stefano Bonfiglio led the deal for Stirling. Alberto Trondoli is CEO of Metroweb.

Advisers
Vendor – Lazard (Corporate finance); Black Rhino Capital (Corporate finance); Pavia e Ansaldo (Legal); PricewaterhouseCoopers (Financial due diligence); Studio Colacicco (Tax).

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