Inflexion sells Glide to Alinda Capital for 3x money

Katharine Hidalgo
01 June 2020

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Inflexion Private Equity has sold fibre networks provider Glide to US infrastructure investor Alinda Capital.

Inflexion is said to be making a 3x money return on the deal, according to a source close to the situation. This gives the deal an IRR of around 20%.

In March 2020, the vendor mandated Oakley to advise on an ongoing sale process, according to a report by Unquote sister publication Mergermarket. The report said the company was being marketed based on EBITDA of more than £15m, while adjusted EBITDA for the year ending on 31 January 2019 was £11m. For its most recent financial year, the company will report EBITDA of more than £13.3m, according to the source.

The company was part of Inflexion's 2010 Buyout Fund, which closed on £375m in September 2010 and has already realised six assets, according to Unquote Data.

The management team is expected to retain a stake in the company.

Previous funding
In May 2011, Livingbridge contributed £5.6m to the £11.5m MBO of CableCom Networking, as it was then known. It held a 48% stake following the limited auction process. Debt facilities were provided by Royal Bank of Scotland.

Livingbridge sold CableCom to Inflexion in 2013, reaping a 4.8x return. The deal saw Livingbridge reinvest on behalf of the Baronsmead VCTs for a minority stake in the business.

During the holding period, the company acquired Glide and WarwickNet.

Company
Founded in 2008, Glide designs, installs and manages fibre networks required to deliver broadband connectivity together with other critical products and services to student accommodation, the private rental sector and small and medium-sized enterprises.

People
Glide – Tim Pilcher (CEO).

Advisers
Vendor – Oakley (corporate finance).