EQT Infrastructure II acquires Spanish telecom infrastructure company IslaLink Submarine Cables

• EQT Infrastructure II acquires IslaLink Submarine Cables, S.L., an independent and neutral operator of submarine fiber optic cables in and around Spain from Cube Infrastructure
• Acquisition marks EQT’s second investment in Spain and EQT Infrastructure II’s second investment in the submarine fiber optic sector
• Illustrates EQT’s commitment to invest and develop companies in the telecom infrastructure sector specifically as well as more generally in Spain

The EQT Infrastructure II Fund (“EQT Infrastructure II”) has agreed to acquire a majority shareholding of IslaLink Submarine Cables, S.L. (“IslaLink” or the “Company”), an independent and neutral operator of submarine fiber optic cables in and around Spain. IslaLink will be acquired, through a series of transactions, from an investment entity related to the Cube Infrastructure Fund and from the founders Alfonso Gajate and Ross Mullins. The founders and the management team will remain with the Company.

IslaLink was founded in 1999 by Alfonso Gajate and Ross Mullins. IslaLink deploys and operates submarine cables in underserved routes to provide telecom operators with the managed bandwidth services required for their retail operations. The Company owns and operates one of the main fiber optic cables connecting the Balearic Islands to mainland Spain and manages international IP-traffic for customers such as telecom operator Algérie Télécom. IslaLink is headquartered in Madrid, Spain and has around 20 employees.

“EQT has been monitoring the developments in the telecom fiber sector for a long time and is excited about the acquisition of IslaLink. IslaLink is a well-run business with an excellent management team and strong partnership based relationships with its customers. We believe that data traffic over fiber optic cables will continue to grow and see substantial value creation opportunities both in IslaLink’s existing business as well as through new expansion and growth initiatives,” says Daniel Pérez Wikmark, responsible for Spain and Portugal at EQT Partners, Investment Advisor to EQT Infrastructure II. “The acquisition will also be EQT’s second investment in Spain and we are exploring additional investment opportunities both in the Spanish and Portuguese markets,” continues Daniel Pérez Wikmark.

“In EQT, we have found an owner with the willingness, experience and financial capacity to support IslaLink’s development. They have a growth focussed strategy, a responsible and hands-on ownership approach and will provide us with access to skilled Industrial Advisors through their global network of specialists. We look forward to working together with EQT and capture future growth potentials for IslaLink,” said the founders of IslaLink, Alfonso Gajate and Ross Mullins.

“After seven years of continuous growth and development of the company, we made the decision with the founders to let IslaLink open a new chapter to support its development. We are confident that under EQT control, IslaLink will continue its growth for the satisfaction of its clients,” said Henri Piganeau, Managing Partner at Cube.

Closing of the transaction is expected in the fourth quarter of 2014, subject to customary anti-trust approvals.

EQT Infrastructure II was advised by Allen & Overy and White Summit Capital.

Contacts:
Daniel Pérez Wikmark, Director at EQT Partners, Investment Advisor to EQT Infrastructure II, +46 8 506 55 370

Johan Hähnel, EQT Infrastructure II spokesperson, +46 70 605 63 34

About EQT
EQT is the leading private equity group in Northern Europe, with portfolio companies in Northern and Eastern Europe, Asia and the US with total sales of more than EUR 25 billion and over 500,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.

EQT Infrastructure II is a EUR 1.9 billion fund investing in medium-sized infrastructure businesses in the Nordic region, parts of Continental Europe, and North America. Investment targets are regulated infrastructure, concession-based infrastructure, market-based infrastructure and infrastructure-related services.

More information can be found on www.eqt.se

About IslaLink Holding
IslaLink Holding is a neutral and independent submarine fiber optic communications operator in Spain. It owns and operates one of the main fiber optic cables connecting the Balearic Islands to mainland Spain and it manages a significant part of Algérie Télécom’s international IP traffic to/from Europe received in Marseilles from Annaba.

More information can be found on www.islalink.com

About Cube
Cube Infrastructure is a EUR 1.1 billion fund investing in European brownfield regulated businesses, mainly focusing on Energy, Transportation and Telecommunication infrastructure, delivering predictable cash-flows.

More information can be found on www.cubeinfrastructure.com

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