euNetworks has closed a €2.1 billion ($2.3bn) equity recapitalisation led by multiple international investors.

The telecoms company will use the funds to “continue advancing its leadership position in the rapidly evolving connectivity and bandwidth infrastructure space as data centre needs continue to grow,” it said.

The move follows the June 2024 debt refinancing which saw the pan-European fibre network provider raise a €1.26 billion debt refinancing package.

Leading equity investors in the recapitalisation include:

• a Stonepeak-managed vehicle anchored by Mercer and Aware Super
• direct investments from:
  • Investment Management Corporation of Ontario (IMCO)
  • APG Asset Management 

Kevin Dean, interim chief executive of euNetworks, said: “Our successful debt refinancing and equity recapitalisation underscores the robust value proposition and fundamental infrastructure delivered by euNetworks. We’ve had a fantastic partnership with Stonepeak and IMCO since 2018 along with our other investors, and we extend our gratitude to them for their unwavering support.

“The combination of Stonepeak, IMCO, APG, Mercer and Aware Super coming together as the new euNetworks represents a very strong opportunity for our customers, our people, our partners and the communities in which we operate.”

euNetworks builds and invests in city and long-haul fibre networks to connect European data centres and data hubs. The company owns and operates fibre networks in 18 cities, as well as a highly differentiated long-haul network that spans 45,000 route kilometres across 17 countries.

Adviser to euNetworks:

• JP Morgan – financial

Advisers to Stonepeak:

• Campbell Lutyens – financial
• Thacher & Bartlett – legal

Advisers to APG:

• UBS – financial
• Baker McKenzie – legal

Adviser to IMCO:

• Gowling WLG – legal