Dublin-based Viatel embarks on €125m acquisition spree
Dublin-based Viatel is to spend €125m on acquiring companies specialising in fibre, cloud and data services after entering a new funding arrangement with the Swedish financier firm Proventus Capital.
The company, part of the Digiweb Group, entered the funding agreement without any equity commitment, according to a spokesman. Viatel is on course to achieve revenues of €100m in 2014, is profitable and is "virtually debt free", said the spokesman.
"On foot of this investment, we are now expanding our sales, technical and product development and delivery teams in London, Dublin, Paris, Amsterdam and Frankfurt," said Digiweb and Viatel chief, Colm Piercy.
Viatel owns 8,500km of transcontinental duct and fibre across Europe, through which it offers telecoms services to large businesses and other telecoms carriers.
It currently employs 220 people, with an additional 20 people set to be hired this year across all locations, due to the funding agreement.
Digiweb, founded in 1997 by Mr Piercy, merged with Viatel in May 2013. The combined entity had €8m in profits on €60m revenue, according to company statements at the time.
"While we already connect 150 data centres and thousands of organisations across Europe, this investment will now enable us to enhance our services and to extend our reach further within Europe and to connect new locations," Mr Piercy said.
Proventus Capital Partners, owned by Swedish businessman and philanthropist Robert Weil, describes itself as "an independent and contrarian investor."