Acquisition of a global telecoms network

Aim
  • To acquire and consolidate subsea cable assets from distressed sellers

Scope
  • Cairneagle formed a consortium to purchase two loss-making networks of subsea cable businesses
  • We assembled a team of industry experts to advise on the bid
  • A business model, bid valuation, deal structure were all created
  • Cairneagle was commissioned to carry out the commercial due diligence covering market development, technology, contracts, and regulation

Outcome
  • The Cairneagle team raised committed capital and pre-sales from strategic investors
  • Following the pulling-out of one of the vendors, Cairneagle advised the telecoms division of the Tata Group on the potential acquisition of Tyco’s submarine cable subsidiary
  • The deal closed successfully, with assets purchased for less than 10% of the multi-billion dollar replacement value
  • Increasing capacity utilisation across the industry led to more stable pricing and significant value creation for the acquirer