US private equity firm Searchlight Capital Partners made an investment for a 49% stake in Eolo spa, a fixed wireless access broadband provider in Italy, active primarily in the residential market. Founder Luca Spada, who is confirmed as ceo, and Elmec Group will remain shareholders with a 51% stake (see here the press release).
New cash will be used to support Eolo’s next phase of growth as the 2018-2020 Strategic plan states that the company will invest about 300 million euros in the period in order to build the first ultra-boardband fixed wireless infrastructure in Italy runnig at 100 Mega, based on %g technologies. MPS Capital Service and UniCredit supported Eolo as for both the financing of its future investments and for the deal.
The company has already invested about 200 million euros for building its actual infrastructure 200 milioni and currently serves approximately 300,000 customers across 13 regions in Central and Northern Italy, and has achieved revenue and ebitda growth of more than 30 percent year-over-year since 2014. In FY ending on March 31st 2018 Eolo is targeting more than 100 million euros in revenues, after having closed the previous FY with 75 million euros in revenues.
Advisors to Searchlight Capital Partners for the deal were: Chiomenti (legal), Kirkland & Ellis (legal), Kpmg (financial accounting, tax, IT), Solon Management Consulting (commercial), M37 Ventures (technical and IT) a Aon (insurance). Advisors to Eolo were Johan Bode (financial) and Clifford Chance LLP (legal).