Mobeus Backs A Winner With High-Speed Entanet
Mobeus Equity Partners has realised its investment in Entanet Holdings Limited (“Entanet”) in a £29m sale to AIM-quoted CityFibre Infrastructure Holdings plc (“CityFibre”). The deal 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%.
Entanet 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 telecommunication products and services to small business customers.
Mobeus 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. Since then, the 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 up to £36m at the time of the sale.
Clive Austin, Mobeus Partner, who sat on the Entanet board, commented, “This investment has proven to be an outstanding success. In the three years since the MBO, Elsa and the team have worked incredibly hard to transform Entanet from an entrepreneurial enterprise to a highly professional part of a publicly quoted company. I am delighted for the team and believe that they, and Entanet, will continue to thrive in this next phase of their development within CityFibre”.
Elsa Chen, CEO of Entanet, added, “Mobeus brought a wealth of experience and have shown great support to Entanet in the last three years. The relationship they have built with us is deeper than that of an investor. I see Mobeus as a true business partner, which supported management 100% in doing what is right for the business. This is such a critical part of our success today.”
The Entanet shareholders were advised by Catalyst Corporate Finance and Gowling WLG.