Cordiant Digital Infrastructure Limited
Completion of Speed Fibre Acquisition
Cordiant Digital Infrastructure Limited (the “Company” or “CORD”), an operationally focused specialist digital infrastructure investor, is pleased to announce the completion of the acquisition of Speed Fibre DAC (“Speed Fibre” or the “Group”).
This acquisition is a further step in the Company’s portfolio diversification by asset class and geography with its entry into wholesale and retail fibre services in Ireland.
Speed Fibre is a cash generative enterprise with a diversified base of blue-chip customers. The Group represents a leading data delivery platform in a market with significant ongoing demand growth and development potential, in particular in the data centre sector. Speed Fibre’s network is at the heart of Ireland’s digital framework. The country is among the most digitally enabled economies in the European Union, and the continuing buildout of digital technologies and network infrastructure is a cornerstone of the Irish Government’s economic, social and environmental policies.
Speed Fibre has a strong ESG and sustainability focus, having recently been ranked #1 in Europe in the fibre networks sector with a GRESB score of 97/100, and is targeting net zero carbon emissions by 2040.
As previously announced, the equity consideration for the acquisition is €97.2 million, based on a total enterprise value of €190.5 million. The equity consideration will be funded by €67.6 million in cash and €29.6 million through a vendor loan note with an initial interest rate of 6% and a maturity of four years. Following the acquisition of Speed Fibre, CORD’s portfolio would have aggregate pro forma annual revenues to 31 March 2023 of £266 million, with aggregate pro forma, normalised annual EBITDA of £124 million for the same period.
With the continuation of Speed Fibre’s existing senior loan facility with its current lenders (maturing in 2029), CORD has pro forma aggregate net gearing of approximately 38%.
The transaction exemplifies the Company’s disciplined approach to investment. CORD continues to be strongly capitalised after the acquisition of Speed Fibre. In addition, the dividend is covered 4.0x by earnings and 1.8x based on adjusted funds from operations.
Steven Marshall, Chairman of Digital Infrastructure at Cordiant Capital, commented:
“We are delighted to welcome Speed Fibre into CORD’s portfolio, which is now further diversified by asset class and geography. Fibre remains an integral part of digital infrastructure, supporting economic growth and social connectivity. As we remain committed to our “Buy, Build, and Grow” model, the plan is to invest further in Speed Fibre’s network and work closely with the Irish government and local partners to extend high-speed digital access. This will nurture domestic innovation and provide a thriving ecosystem for both multi nationals and homegrown tech companies to flourish.”
Benn Mikula, Co-Head of Cordiant Digital and CEO of Cordiant Capital noted:
“Notwithstanding the continued pressure on the investment companies’ sector of the London Stock Exchange, the Company remains focused on building shareholder value through the combination of increasing cash flow and NAV at its portfolio companies as well as disciplined capital allocation, including promising investments such as Speed Fibre.”
Peter McCarthy, CEO of Speed Fibre, added:
“Cordiant Digital Infrastructure Limited is an ideal partner for Speed Fibre, bringing a combination of capital support and expertise to drive the business forward. In this industry, having an investor with a long-term perspective is key and, as a team, it gives us the comfort to be able to invest to support our future growth.”
Analyst Call
The Investment Manager will host a remote presentation for analysts at 11.00 a.m. BST today. For those wishing to log in to the analyst call, please contact Ali AlQahtani at Celicourt via CDI@celicourt.uk.
For further information, please visit www.cordiantdigitaltrust.com or contact:
| Cordiant Capital Inc. | +44 (0) 20 7201 7546 |
| Investment Manager | |
| Stephen Foss, Managing Director | |
| Aztec Financial Services (Guernsey) Limited | +44 (0) 1481 749700 |
| Company Secretary and Administrator | |
| Chris Copperwaite / Laura Dunning | |
| Investec Bank plc | +44 (0) 20 7597 4000 |
| Joint Corporate Broker | |
| Tom Skinner (Corporate Broking) | |
| Lucy Lewis / Denis Flanagan (Corporate Finance) | |
| Jefferies International Limited | +44 (0) 20 7029 8000 |
| Joint Corporate Broker | |
| Stuart Klein / Gaudi Le Roux | |
| Celicourt | +44 (0) 20 7770 6424 |
| Financial Communications Advisor | |
| Philip Dennis / Felicity Winkles / Ali AlQahtani |