Equity investor Mobeus Equity Partners is making an initial £6 million investment to support the £14 million management buyout. Entanet’s founder, Jason Tsai, will remain a significant shareholder.
The investment will support Entanet’s plans to continue its business growth over the coming years. Entanet is an established provider of wholesale communications services in the UK, enabling more than 2,000 partners to offer a wide range of connectivity options to predominantly business customers, from copper and fibre broadband services to tailored IP Virtual Private Networks (IP VPNs) and standalone Ethernet circuit solutions.
Entanet is unique in remaining the only channel-focused non-BT company to have built out its 39 PoP network to every one of the 20 key aggregation points that form BT’s 21st Century Network UK-wide; and also to have fully-adopted both the Wholesale Broadband Connect (WBC) and IPStream Connect (IPSC) services. This gives Entanet full control of its network and enables the company to provide partners and customers with reliable, high-quality connectivity services, with guaranteed levels of bandwidth, availability and service levels.
Elsa Chen, Managing Director of Entanet, stated: “Mobeus is a highly-respected mid-market equity investor and we see this investment as a major vote of confidence in the long-term prospects for Entanet’s business. It will strengthen our strategy of building a solid loyal partner channel that is capable of driving steady, stable and sustainable growth over the long term. It will also support the continuing investment we are making in our network and in developing and delivering new services that enable our partners to offer more choice and value to the widest range of customers.”
Ashley Broomberg, Partner at Mobeus, commented: “Entanet has a great reputation and a sound and proven business model. We are delighted to provide our support for the company’s growth plans and look forward to working with the management team to build on its firm foundations in the growing connectivity services sector.”
As part of the transaction, Mobeus has introduced non-executive director Richard Atkins as investing Chairman to advise Entanet at a strategic level. Atkins has significant telecoms experience and a strong track record in delivering growth in private equity backed businesses. Atkins was previously Non-Executive Director of Global Crossing UK plc, Morse plc, and MessageLabs Group Ltd.