Private equity firm Warburg Pincus said that it has sold it majority stake in German regional operator Inexio to EQT infrastructure. The other shareholder Deutsche Beteiligungs and other minority investors have also sold their stakes to EQT. Warburg Pincus owned a stake of 59.45 percent in Inexio.
The investors did not disclose the financial terms, but sources familiar with the transaction said it was worth around EUR 1 billion, Reuters report. The deal is expected to close in the fourth quarter, subject to regulatory approvals.
EQT wants Inexio to grow to become a large company, focusing on expanding in its existing region of operations but with the possibility of developing its fibre network across Germany, partner at EQT Matthias Fackler said.
Inexio was founded in 2007 by entrepreneur David Zimmer. It currently provides high-speed internet access to more than 110,000 customers and 6,000 businesses. The two managing directors David Zimmer and Christoph Staudt will continue to be responsible for the operative business and will remain involved in the company. Also the third managing director, Martin Balzer, as well as the entire management team remain on board after the sale.
