DC Advisory advised DIF Capital Partners on the sale of its 55% ownership in ADTiM

Background

• Founded in 2008, ADTiM is an independent wholesale fibre network operator in subsidised low-density rural areas of South France, providing 18,300km of critical fibre to the home (FTTH) broadband infrastructure
• ADTiM’s network is run by Axione, one of the largest wholesale operators in France, managing c.20% of all low-density rural areas in France
• DIF Capital Partners (DIF) acquired ADTiM in 2017 and supported the company in rolling out 100,000 new connections and establishing a robust business-to-business platform with over 2,000 enterprises served by its network
• DIF initiated a sale process to identify a new partner, who will lead ADTiM in the roll out of the next portion of the network with the aim of reaching c.350k FTTH lines by 2025

Process

• DC Advisory (DC), led by Grégory Roquier, was engaged by DIF to provide sell-side M&A advice and coordinate the sale process through a competitive auction
• DC leveraged its extensive experience in the French fibre sector, working closely with the shareholders and network operator, Axione
• Through the transaction, DC managed several detailed workstreams including complex financial modelling, optimising the capital structure and financing, coordination of due diligence processes and transaction documentation

Outcome

• On 18 May 2022, HICL Infrastructure, led by its investment manager InfraRed Capital Partners, announced their acquisition of ADTiM
• This transaction confirms DC’s position as a strong sell-side advisor and demonstrates strong expertise within the European telecom infrastructure sector