Wholesale voice and data communications provider
Mobeus has realised its investment in Entanet Holdings, in a £29m sale to CityFibre Infrastructure Holdings plc.
Entatet is one of the UK's leading wholesale communications infrastructure providers. The business uses third party networks to deliver a wide range of connectivity and telecommunications products and services to small business customers.
Mobeus originally backed CEO Elsa Chen and her management team in the MBO of Entanet in February 2014, committing a total of £9.5m and introducing experienced Chairman Richard Atkins to the Board. The deal with CityFibre represents an initial return of 2.5x for Mobeus-advised funds, with potential for this to increase to in excess of 2.7x over the next two years. Initial IRR to shareholders is 38.7%, potentially increasing to 40.9%.
Since the original investment, the Entanet management team has worked with Mobeus to refine the business model and introduce new products and services. As a result, annual revenues have grown from £27m to £36m at the time of the sale.
Ashley Broomberg completed the original deal for Mobeus. Clive Austin sat on the Entanet Board throughout the life of the investment and led the exit for Mobeus.
- Management Buyout
- August 2017
- £29 million
- Clive Austin