UK-based digital infrastructure investor, Cordiant Digital Infrastructure (CORD) has announced its move to acquire Speed Fibre DAC, Ireland's open-access fibre infrastructure provider, according to an Exchange filing made on Thursday. CORD announced that this acquisition is valued at a total enterprise value of EUR 190.5 million and will be the fourth digital infrastructure platform acquired by the company since its launch in 2021.
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Funding Structure and Terms
Under the terms of the agreement, CORD will secure the entire issued share capital of Speed Fibre. According to the filing, the purchase will be funded by a combination of EUR 68 million in cash and EUR 29 million through a vendor loan note, carrying an initial interest rate of 6 percent and maturing in a four-year timeframe.
Aligns with Growth Strategy
CORD says this acquisition aligns seamlessly with CORD's "Buy, Build & Grow" model, aimed at strategically acquiring operational digital infrastructure platforms. It also bolsters the company's diversification efforts by extending its presence across both sub-sectors and geographic regions.
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The transaction is currently pending customary regulatory approvals in both Ireland and the United Kingdom. The deal's finalization is expected later this year, subject to these regulatory clearances.
Speed Fibre's Network and Services
Speed Fibre DAC operates a network, spanning 5,400 kilometres of owned and leased fibre and wireless backhaul throughout Ireland. The company specialises in offering dark fibre, wavelength, and ethernet services to a wide array of clients, including carriers, internet service providers, corporations, government entities, and data centre sector.
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Through this acquisition, CORD plans to take advantage of the growing data centre market in Ireland, projected to become one of the fastest-growing hyperscale data centre markets in Western Europe over the next six years. Speed Fibre is a backbone provider, but it also has a subsidiary called Magnet Plus, which offers connection and service to around 10,000 customers in Ireland, both in the business and retail sectors.
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Speed Fibre has set a target of achieving net zero carbon emissions by the year 2040. Pending regulatory approvals, the deal is expected to close later this year, paving the way for CORD to extend its footprint.
Speed Fibre Group subsidiaries
Speed Fibre Group operates in both the retail and wholesale sectors via subsidiaries Magnet Plus, which the group acquired back in 2020 and Enet. Enet manages Ireland's 88 metropolitan area networks (MANs), connecting 94 regional towns to high-speed international networks. Magnet Plus operates Ireland's largest independent connectivity network, delivering services to major technology firms worldwide.
