Cordiant Digital Infrastructure Ltd (LSE:CORD) (CORD) has confirmed that it has completed the €97.2 million acquisition of Speed Fibre DAC, adding its fourth significant business and a new geography to its portfolio.
The purchase of Ireland’s leading wholesale and retail broadband services provider was agreed in August, and has since been cleared by regulators in Ireland and England.
CORD noted that Speed Fibre is cash-generative with a diversified base of blue-chip customers, in a market with significant ongoing demand growth and development potential, in particular in the data centre sector. It has strong ESG credentials too, top-ranked in its sector.
It pointed to Ireland being among the most digitally enabled economies in the European Union, with the continuing buildout of digital technologies and network infrastructure a cornerstone of the Irish government's policy.
Following the acquisition, the portfolio would have aggregate pro forma annual revenues of £266 million and EBITDA of £124 million for the year to 31 March 2023.
Pro forma net gearing is approximately 38%, with CORD saying that it continues to be strongly capitalised after the acquisition and with its dividend covered 4.0x by earnings and 1.8x based on adjusted funds from operations.
Board chairman Steven Marshall said the investment company plans "to invest further in Speed Fibre's network and work closely with the Irish government and local partners to extend high-speed digital access".
Benn Mikula, co-head of CORD and chief executive of investment manager Cordiant Capital, said: "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."