Catalyst advises shareholders on the £29m sale of Entanet to CityFibre

Catalyst Corporate Finance has advised the shareholders of Entanet Holdings Limited (“Entanet”) on its £29 million sale to CityFibre Infrastructure Holdings plc (“CityFibre”). Completion of the transaction is announced today. Shareholders include Mobeus Equity Partners and management.

This is the fifth transaction that Catalyst has advised on this year in the TMT sector, where it has significant experience of advising high performing technology driven businesses. Recent TMT deals include Exclaimer’s £23 million growth capital investment by Livingbridge; PS Financials’ sale to Iris Software Group; Adapt’s sale to Datapipe; and Bluefin’s £42 million sale to Mindtree. 

Entanet is a wholesale communications infrastructure provider that uses third party networks to deliver a wide range of connectivity and telecommunication products and services to internet service providers. It is headquartered in Telford where it employs 100 people and generates revenues of around £36 million.

This acquisition forms part of CityFibre’s strategy to become the leading alternative wholesale full fibre network provider to Openreach. It brings together two complementary wholesale capabilities: CityFibre's national wholesale fibre infrastructure and Entanet's established wholesale product portfolio and commercial relationships with an extensive number of internet service providers.

Since its formation in 2011, CityFibre has become established as an independent provider of wholesale fibre infrastructure for internet service providers as well as for mobile operators, providing fibre connectivity services through designing, building, owning, and operating fibre optic network infrastructure.

Catalyst played a key role in delivering the deal on the best terms for Entanet’s shareholders, ensuring value retention and successful execution in just three months from CityFibre’s initial approach. Catalyst’s team included Partner Jamie Hope, Principal Richard Benyahia and Executive Jonathan Toh.  

Catalyst Partner, Jamie Hope, commented: “We are delighted to have supported the shareholders of Entanet through a complex sale process which successfully completed today. The deal is significant for the sector as a relatively unique example of vertical integration with CityFibre seeking to challenge Openreach’s dominance in full fibre network provision. The deal also supports the trend towards increasing levels of M&A activity in the UK fibre connectivity space, which we expect to continue over the medium term.”

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