Altice Europe N.V., acting through its SFR FTTH subsidiary, agreed to acquire Covage for a total cash consideration of €1.0 billion.
Altice is acting in partnership with its consortium of financial investors, led by OMERS Infrastructure and including Allianz Capital Partners and AXA Investment Managers – Real Assets.
Covage is the 4th largest fibre wholesale operator in France with 2.4 million homes to be passed (including 0.8 million homes already built). This network will be added to SFR FTTH footprint
of more than 5.4 million secured homes to be passed (including 1.7 million homes built). Investors in Covage include Cube Infrastructure Fund and Partners.
SFR FTTH said the acquisition expand its footprint, with more households still yet to be awarded as well as selective opportunities for consolidation.
Patrick Drahi, founder of Altice, said: “I am very pleased that we are further expanding the leading FTTH wholesaler in Europe. We are extremely proud to integrate Covage, a great company, with a portfolio of areas in France complementary to ours. With this transaction we also bring onboard excellent local relationships. We continue to be focused on deleveraging Altice Europe notably thanks to growing revenues and EBITDA which will be supplemented with disposal proceeds. As I have explained previously, we are in advanced discussions with several parties in relation to our Portuguese fibre asset.”
