Livingbridge explores M247 piecemeal sale

Amy-Jo Crowley, Charlie Taylor-Kroll
03 September 2021

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M247 sponsor Livingbridge is exploring a piecemeal sale of the internet infrastructure company, three sources familiar with the situation said, after failing to sell the whole business in February 2019.

The UK-based sponsor will first look to sell off M247's international assets in Romania, two of the sources said, with one adding that informal conversations are taking place, mainly with trade players.

Manchester-based M247, which provides co-location, connectivity, cloud and other complementary IP services, owns two data centres in Bucharest alongside its two UK data-centre businesses based in Manchester, where it is headquartered. Other international investments have included a new office in Spain, according to the company's 2020 annual report.

The company's international assets are relatively capex-heavy and Livingbridge is reluctant to continue funding the business, one of the sources said.

Livingbridge is likely to eventually sell all the assets in two or three pieces, the sources said. "The entire business is likely to be put up for sale, but it's unlikely to go to just one buyer," one added.

DC Advisory is advising the sell-side, four sources familiar with the situation said. Mergermarket reported in February 2019 that DC Advisory had been appointed to explore a potential sale of M247, which was expected at the time to fetch a valuation of around GBP 200m.

The Manchester-based company, previously called Metronet, recorded GBP 17.8m adjusted EBITDA in the year to March 2020, up 6% from GBP 16.4m recorded in the same period the year before, according to Companies House filings. Its revenues rose to GBP 63.7m, 6% higher than the previous year's GBP 60m.

Livingbridge reinvested in M247 in partnership with Ares Management Corporation in March 2020.

M247 services growing businesses that provide technology solutions to UK and international customers. It has offices in Manchester, London, Bucharest and Malaga, according to Companies House filings.

Established in 2003, the company operates a hybrid ISP network in the UK and has 250 employees across five sites, supporting almost 34,000 customers across 92 countries, according to its website.

Livingbridge, DC Advisory and Ares declined to comment. M247 did not respond to requests for comment.