KN Group merger with Circet will see €1.1bn revenue
Irish telecoms network services provider KN Group believes its merger with French firm Circet will create a group with more than €1.1bn in annual revenue this year.
The deal, first revealed by the Irish Independent, has been officially announced by the parties.
Circet, owned by private equity firm Advent International since earlier this year, turns over around €800m a year. The deal will see both businesses retain their current brands and management teams in their home markets.
Eamonn O'Kennedy, former chief financial officer of Cairn Homes, has joined KN in the same role on foot of the deal.
The parties did not announce the consideration paid to KN - resulting in a windfall for chief executive Donagh Kelly and fellow directors Conall Murray and Brian Curran - but it is believed a business of that size would fetch a price of over €150m.
KN was advised on the deal by Clearwater International, led by John Sheridan. KN has expertise in rolling out fibre networks and is one of the partners for the build-out of the National Broadband Plan, with the sole remaining bidder being the Granahan McCourt-led consortium.
"With an expanded offering and geographical footprint, we are very well positioned to capitalise on the significant growth opportunities we see across markets, underpinned by the stellar growth in data consumption, extensive fibre deployment plans and the continued international investment in mobile networks," said Circet chief executive Philippe Lamazou.
Michael Ogrinz, partner at Advent International, added: "This first major step outside France for Circet just a few months after our initial investment is a great example of how our international network here at Advent can help bring together the best companies in a given sector.
"Circet and KN together will become Europe's foremost telecom services company." The merged entity will span France, the UK, Ireland, Germany, Morocco and the Caribbean.