EQT Targets Swedish Fiber Market with IP-Only Acquisition

• EQT to acquire fiber based data communication provider IP-Only

• EQT sees potential in further strengthening IP-Only’s market presence and service offering by providing improved capital base, increase the investment pace and pursue selective add-on acquisitions

EQT has entered into an agreement to acquire 91% of fiber based data communication provider IP-Only Telecommunication AB (“IP-Only” or the “Company”) from the three largest shareholders. Through the acquisition, EQT takes the first step in its aim for growth and consolidation of the Swedish fiber network market.

IP-Only is a leading provider of high capacity fiber based data communication and datacenter services in Sweden. The acquisition will create a strong platform for further expansion in the Swedish fiber network market through organic growth fueled by further investments in the IP-Only network and selective add-on acquisitions.

The Company owns and operates a high-capacity fiber network linking the Nordic capitals Stockholm, Oslo, Copenhagen and Helsinki as well as Sweden’s second and third largest cities Gothenburg and Malmoe. In addition, IP-Only owns Metro Area Networks (MAN) in Sweden, including the largest MAN in Uppsala, and several data centers supporting co-location and cloud based product offerings to corporate clients.

“IP-Only is an exciting company with a great business on its own, with potential to further improve its market position by consolidating and making further investments in the Swedish fiber market in line with the Swedish Government’s target for 2020”, says Gunnar Asp, EQT Industrial Advisor and proposed Chairman of the Board of Directors of IP-Only.

Data traffic is increasing rapidly due to the proliferation of high quality on-demand video streaming, cloud services and video conferencing.

“Data traffic is expected to continue to grow in a high pace making continued conversion to fiber technology inevitable. EQT has a long and deep experience from the cable TV and communications industries and we believe that with IP-Only as a base, EQT has the ability to create a leading independent and open network operator in Sweden”, says Jannik Kruse Petersen, Partner at EQT Partners, investment advisor to EQT.

IP-Only is privately owned and was founded in 1999. In 2002, it acquired the Scandinavian fiber network of bankrupted KPNQwest. In total, approximately SEK 3 billion has been invested in IP-Only’s network infrastructure over the years.

“With the financial resources and industry experience that EQT brings, we can accelerate growth and investments in new infrastructure. IP-Only’s infrastructure and market position is perfectly suited to support the increased demand from IT-heavy corporates and to act as platform in a potential consolidation of the Swedish fiber infrastructure market”, says Mikael Philipsson, CEO of IP-Only.

The transaction is subject to customary regulatory approvals and is expected to be closed during the second quarter 2013.

Contacts:
Gunnar Asp, EQT Industrial Advisor tel +46 733 808 009
Jannik Kruse Petersen, Partner at investment advisor EQT Partners tel +45 33 18 12 49
Mikael Philipsson, CEO IP-Only tel +46 708 431 043
Johan Hähnel, EQT Spokesperson tel +46 8 506 55 334

About EQT
EQT is the leading private equity group in Northern Europe with approximately EUR 20 billion in raised capital and multiple investment strategies. Together with a superior network of independent Industrial Advisors, EQT implements its investment strategy by acquiring or financing good medium-sized to large companies in Northern and Eastern Europe, Asia and the United States, supporting their development into leading companies. Development is achieved by an industrial strategy with focus on growth. Since inception, EQT has invested more than EUR 12 billion in around 110 companies and exited close to 60. EQT-owned companies have more than 550,000 employees.

EQT Partners, acting as investment advisor to the managers of each EQT fund, has around 120 investment professionals with an extensive industrial and financial competence. EQT Partners and its affiliates have offices in Copenhagen, Frankfurt, Helsinki, Hong Kong, London, Munich, New York, Oslo Shanghai, Singapore, Stockholm, Warsaw and Zurich.

More information can be found on www.eqt.se

About IP-Only
IP-Only is a modern Swedish Internet and telecom operator that owns its own Nordic fiber infrastructure, Metro Area Networks, (MAN ) data centers and IaaS-platform. Customers include the most demanding users of data communications- and infrastructure services, such as other operators, communications-intensive companies, financial institutions and media companies (such as well-known Aftonbladet, Viasat, Level3, Swedish National Television, etc.). IP-Only is also a provider to the public sector with clients such as the Government Offices of Sweden, the Swedish Social Insurance Agency and the Swedish Pensions Agency.