EQT acquired a majority of Inexio. EQT is buying the shares held by Warburg Pincus, which owns 59.45 percent, and Deutsche Beteiligungs AG. Reuters valued the deal at around 1 billion euros ($1.1 bilion). Inexio is a German telecommunications company.
EQT acquires majority inexio, management team remains on board
Warburg Pincus and Deutsche Beteiligungs AG sell shares
Saarlouis 29.09.2019 – The telecommunications company inexio has found a new partner for the ambitious growth targets with EQT. The private equity firm, which focuses on long-term investment in its investments, will acquire the shares of Warburg Pincus, with 59.45% majority shareholder and Deutsche Beteiligungs AG since 2016, which has already been supporting the growth of inexio since 2013. About the purchase price, the parties have agreed to secrecy. The two managing directors and founders David Zimmer and Christoph Staudt will continue to be responsible for the operative business and will remain substantially involved in the company. Also the third managing director, Martin Balzer, as well as the entire management team remain on board.
inexio is a rapidly growing company in the German telecommunications market, which realizes fiber-optic Internet connections for business and private customers. Since its founding in 2007, the company has built more than 10,000 kilometers of fiber optic network in Germany and is one of the drivers of accelerated expansion of fast Internet networks. In January 2019, David Zimmer, founder and CEO of inexio, has set a new ambitious growth target: By 2030, inexio intends to reach around 2,000,000 million households with fiber optic connections, thereby making a significant contribution to the transition to gigabit society in Germany.
With EQT, inexio has now found a new partner to achieve this goal. “Achieving our growth target requires investments of around 5 billion euros. In the course of exploring the capital market with a view to a capital increase, a situation has arisen which is advantageous for all players. The takeover of the majority stake by EQT gives us the backing for our growth, “said David Zimmer.
Matthias Fackler, EQT partner is looking forward to the cooperation: “inexio has enormous potential. Together, we will turn the medium-sized company into a major player in the broadband market. The success story of inexio will continue – in the previous regions as well as nationwide. ”
David Zimmer expressly expressed his thanks to the persons responsible at Deutsche Beteiligungs AG and Warburg Pincus. “Not only did they recognize our potential at an early stage, but they always challenged us and made us better. Without the commitment of the two private equity companies, we would not be where we are today. ”
Yesterday, the partners signed the corresponding contracts in the course of signing. After the necessary review by the antitrust authorities, the transaction should be completed in 2019.