Cordiant Digital Infrastructure (CORD), a UK-based digital infrastructure investor, has announced its intention to acquire Speed Fibre DAC, a leading open-access fibre infrastructure provider in Ireland. The acquisition is in line with CORD’s strategic approach of “Buy, Build & Grow,” aimed at expanding its digital infrastructure portfolio and presence in the European market. This move marks CORD’s fourth acquisition of a digital infrastructure platform since its launch in 2021.
Financial Structure and Terms
According to the terms of the agreement, CORD will acquire the entire issued share capital of Speed Fibre DAC. The acquisition is valued at a total enterprise value of EUR 190.5 million. The funding for this acquisition will comprise EUR 68 million in cash and EUR 29 million through a vendor loan note. The loan note carries an initial interest rate of 6 percent and is set to mature over a four-year period.
Strategic Alignment and Diversification
This acquisition aligns seamlessly with CORD’s strategy of acquiring operational digital infrastructure platforms with the aim of growth and diversification. The move not only expands CORD’s presence in the digital infrastructure sector but also extends its footprint across sub-sectors and geographic regions.
Speed Fibre’s Network and Services
Speed Fibre DAC boasts an extensive network that covers 5,400 kilometers of owned and leased fibre and wireless backhaul throughout Ireland. The company specializes in offering various services, including dark fibre, wavelength, and ethernet services. These services cater to a wide range of clients, such as carriers, internet service providers, corporations, government entities, and the data center sector.
The acquisition provides CORD with an opportunity to tap into the burgeoning data center market in Ireland. The country is projected to witness significant growth in hyperscale data centers over the next few years, making it a strategic move for CORD.
Regulatory Approvals and Future Prospects
The acquisition is currently pending regulatory approvals in both Ireland and the United Kingdom. Subject to obtaining these clearances, the deal is expected to be finalized later this year. Through this acquisition, CORD aims to leverage Speed Fibre’s network and expertise to further enhance its presence in the digital infrastructure space.
Speed Fibre’s subsidiary, Magnet Plus, is a key player in delivering connectivity services to businesses and retail customers in Ireland. The company has also set ambitious sustainability goals, targeting net zero carbon emissions by 2040.
As the acquisition progresses and regulatory approvals are obtained, CORD is poised to strengthen its position in the European market and bolster its digital infrastructure offerings, contributing to the ongoing development of Ireland’s digital connectivity landscape.
