Interoute ‘hires banks to look at €1.65bn sale’

By:
Alan Burkitt-Gray
Published on:

Interoute CEO Gareth Williams says he is ‘building the business’ in face of €1.65bn sale rumour

Top Interoute executives are keeping quiet in the face of a report that the company is looking at a possible sale.

A Bloomberg report, quoting unnamed people who “asked not to be identified because the talks are private”, said Interoute is working with Credit Suisse and investment bank advisor Evercore to explore a possible deal.

Global Telecoms Business asked Interoute CEO Gareth Williams and CFO Catherine Birkett to comment, expecting the usual “we comment on rumours”. Williams replied: “Indeed – no comment here. We remain focused on building the business.”

Bloomberg said Credit Suisse and Evercore were dubbing the work for the carrier Project Nitro, and said its sources valued the company at up to €1.65 billion, based on its earnings before interest, tax, depreciation and amortisation (Ebitda).

Interoute’s revenue last year was €727 million and its Ebitda was €147 million. The company was set up in 1995, and its main backer is a Swiss private fund, the Fondation de Famille Sandoz (Sandoz Family Foundation) that represents the family behind the former Sandoz drugs company. It owns 70%, and two private equity investors own the rest.

The company has two outstanding loans totalling €625 million. One, of €350 million, is payable in October 2020 and the other, of €275 million, is payable in November 2023.