Entanet

Wholesale voice and data communications provider

www.enta.net

Mobeus has realised its investment in Entanet Holdings, in a £29m sale to CityFibre Infrastructure Holdings plc.

THE BUSINESS

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.

THE DEAL

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%.

THE IMPACT

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.

THE PEOPLE

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.

Information

Clive Austin
Sector:
Technology
Type:
Management Buyout
Status:
Realised
Date:
August 2017
Value:
£29 million
Leader:
Clive Austin