Searchlight Capital is said palnning to sell its 49% stake in Eolo spa, a telecommunications operator specializing in ultra-broadband wireless for the residential and business market in Italy, MF – Milano Finanza writes, adding that the auction should start by the end of the year. The hypothesis of exit through an ipo are said to have been discarded, due to a volatile market trend.
Eolo is reported to be valued between 800 million and one billion euros, considering that the EV multiple of its sector is more than 10x the ebitda and that the expected ebitda for the year ending March 31, 2021 is over 80 millions , after a 74.2 millions pro-forma ebitda for the year ended March 31, 2020, after revenues of 157 millions. The fiscal year as at 31 March 2019, on the other hand, closed with revenues of 125.5 millions, an ebitda of 40.4 millions and a net financial debt of 64.6 millions (source Leanus).
Founded in 1999 and based in Busto Arsizio (Varese), Eolo is a telecommunications operator specialized in bringing high-speed internet to areas not covered by fiber and is 51% controlled by the founder and ceo Luca Spada and by Elmec Group. The rest of the capital has been held by the Searchlight fund since the end of 2017, which at the same time announced an investment plan of 300 million euros in the three-year period 2018-2020 (see here a previous article by BeBeez). Subsequently, last May Mr. Spada announced an investment plan for a further 150 million euros (see the press release here), following the 155 million euros loan received last January by the company, precisely in order to support growth. in particular in the small municipalities of Southern Italy, expanding the coverage of the Eolo FWA service to 100 Mega, and in the areas that suffer most from the “speed divide”(see here a previous article by BeBeez). The aim of the new plan is to extend the ultra-broadband network to another 1,500 municipalities in Italy in addition to the 6,000 municipalities already covered.
Six months after the announcement of the new investment plan of 150 million euros, today the company has already brought and strengthened the ultra-fast connection in 375 municipalities by creating a network that allows to reach up to 100 Mb / s for home users and 1 Gb / s for businesses. Eolo confirms its strong presence in Northern and Central Italy with respectively 98% and 95% of municipalities covered, and is strengthened in the South of the country where, with over 680 municipalities covered, in just six months it has increased its network by +36 % (see the press release here).
