EQT launches sale of Nordic broadband operator GlobalConnect – FT

EQT has launched the sale of its Nordic broadband and data center operator, GlobalConnect, in a transaction that could value the business at approximately €8 billion. Goldman Sachs is managing the auction, with documents already distributed to potential bidders, including infrastructure investor Antin, for the company which provides extensive fiber connectivity, operates 23 data centers, and manages 27 subsea cables across the Nordics and northern Germany.

Analysis

Private equity firm EQT has initiated a significant divestment process, launching the sale of its Nordic digital infrastructure operator, GlobalConnect, with a potential valuation of approximately €8 billion. Goldman Sachs has been appointed to manage the auction, signaling a formal and competitive sale process is underway. The high valuation is supported by GlobalConnect's substantial asset base, which includes fiber connectivity to over 900,000 homes, a 30,000-strong business customer base, 23 data centers, and 27 subsea cables across the Nordics and northern Germany. The mention of infrastructure investor Antin as a potential suitor underscores the strong market appetite for high-quality, large-scale digital infrastructure assets. For EQT, which acquired its majority stake in 2017, this sale represents a potentially lucrative exit, reflecting the positive sentiment score of 0.7 associated with the firm. The transaction is a key event in the European M&A and private markets landscape, highlighting continued investment focus on the technology and infrastructure sectors.

Key Decisions for Investors

• Investors in EQT should view this sale as a key positive catalyst, as a successful exit at or near the €8 billion valuation would crystallize significant returns and provide dry powder for future investments.
• The transaction serves as a crucial valuation benchmark for the European digital infrastructure sector, suggesting that companies with similar high-quality fiber and data center assets may see a positive re-rating.
• For those tracking potential acquirers like Antin, the deal's high price tag highlights the strategic value of Nordic infrastructure but also warrants scrutiny of the winner's ability to generate adequate returns on such a large-scale investment.