HomeTechSpanish fiber network provider Avatel draws bids from telecom giants - Times...

Spanish fiber network provider Avatel draws bids from telecom giants – Times of India


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Spanish fiber-optic network operator Avatel Telecom SL has attracted interest from major industry players as it seeks a buyer, according to Bloomberg. Telecommunications giant Telefonica SA and private equity firm H.I.G. Capital are reportedly among the leading contenders.
Sources familiar with the situation, who requested anonymity due to the confidential nature of the talks, revealed that investment firms PAI Partners and Searchlight Capital Partners were also invited to participate in the second round of bidding.Avatel’s potential valuation could reach €700 million (approximately $761 million) including its net debt, as per one source.
The news report further indicates that Spanish investment firm Inveready is considering joining forces with one of the four leading bidders. However, representatives from Avatel, Telefonica, PAI Partners, Searchlight Capital Partners, and Inveready all declined to comment on the ongoing discussions. A spokesperson for H.I.G. Capital was also unavailable for immediate comment.
Founded by its current leadership – CEO Ignacio Aguirre, Chairman Victor Rodriguez, and Vice Chairman Jorge Gomez – Avatel boasts a remarkable growth trajectory. Originally a small provider on the Costa del Sol, the company has climbed the ranks to become Spain’s fifth-largest fiber-network operator.
Avatel’s expansion strategy involved a series of strategic acquisitions, with the company purchasing over 155 firms across the country and investing €650 million in the past three years, according to their website. It’s important to note that Avatel relies on a wholesale agreement with Telefonica to service its mobile customers.

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