Bidders in the second round auction process for Interoute, a UK cloud-services operator, include I Squared Capital and Wren House, sources told Inframation’s sister title Mergermarket.
Interoute. Others shortlisted include GTT Communications, a Virginia-based telecoms network provider, private equity firm Bain, Philippine Telegraph & Telephone, the country’s telecoms provider, and Apax, according to sources briefed on the matter.
Final bids are due on Thursday (8 February) which follows submission of first-round bids on 28 November. Credit Suisse and Evercore are advising on the sale.
Interoute, which is 70%-owned by the Sandoz Family Foundation, posted 2016 turnover of EUR 727m and adjusted EBITDA of EUR 164m, according to a company presentation.
Some of the bidders in the first round were only willing to pay 6-7x EBITDA, which fell below the vendors’ price expectations of 8x-9x EBITDA, according to sources.
“Those submitting offers valuing the company at 6-7x EBITDA generally did not get through [to the second round],” one of the sources said.
Interoute, Crestview, GTT and Apax declined to comment. Bain, I Squared and Aleph did not reply to requests for comment. PTT and Wren House owner Kuwait Investment Authority could not be reached for comment.