mynth
06/2010

HG CAPITAL takes majority stake in MANX TELECOM

UNITED KINGDOM Telecom / Operators EV £100–350M

Context

European sector-focused private equity firm HgCapital has successfully agreed to acquire a majority equity stake in Manx Telecom, previously a wholly owned subsidiary of Telefónica. The buyout was executed alongside CPS Partners, a specialist international telecommunications management company. Subject to customary local regulatory clearances, the transaction includes a capital commitment of approximately £11 million from the listed vehicle HgCapital Trust plc, representing 15% of the sponsor's total equity ticket. The buyout perfectly aligns with HgCapital’s core thesis of backing highly resilient, growth-oriented platforms. The Isle of Man offers a robust macroeconomic backdrop (boasting 25 years of unbroken GDP growth) and a highly favorable regulatory environment that encourages sustained infrastructure investment. Partnering closely with the management team, the financial sponsor intends to drive significant value creation by upgrading the core network and funding a new state-of-the-art data hosting center. Furthermore, HgCapital will focus on operational margin improvements and actively support a targeted buy-and-build strategy to accelerate the expansion of high-margin off-island opportunities.

MANX TELECOM, which reported an EBITDA margin of [members only] in 2009, is valued in this transaction at an EV/EBITDA multiple of 5x–12x, a level significantly lower than the average currently observed in the TMT (Tech, Media, Telecom) sector (14.7x).

-> Deep-dive in TMT (Tech, Media, Telecom) market trends

Target

Manx Telecom is the undisputed incumbent fixed and mobile telecom operator on the Isle of Man. Operating as a former monopoly, the business provides mission-critical telecommunication and data services to a broad base of commercial and consumer clients. Renowned for its technological leadership, Manx Telecom was the first European operator to launch a live 3G network and the continent's first commercial HSDPA service. Supported by a skilled workforce of 300 professionals, the platform boasts highly resilient core operations while successfully scaling rapidly growing, high-margin niche off-island voice and data hosting divisions.

Ent. Value

£100–350M

Equity Value

[members only]

Multiples

EV / Revenue

1x–3x

EV / EBITDA

5x–12x

EV / EBIT

[members only]

Historical Financials (GBP)

Year
Rev
EBITDA
EBIT
2009
£50–100M
£10–30M
[members only]
2008
£50–100M
£10–30M
[members only]

Other operations with MANX TELECOM

Other operations with MANX TELECOM

List of similar M&A transactions (Date, Acquirer, Target, Country, Sub-sector)
DateAcquirerTargetCountrySector
10/2025JT GROUP / CVCMANX TELECOMUNITED KINGDOMOperators
03/2019BASALT INFRASTRUCTURE PARTNERSMANX TELECOMUNITED KINGDOMOperators
02/2014PUBLIC MARKETS (IPO)MANX TELECOMUNITED KINGDOMOperators

REFERENCES

Valuation range: EV £100–350M

Revenue range: £50–100M

EBITDA range: £10–30M

EV/Revenue range: 1x - 3x

EV/EBITDA range: 5x - 12x

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of MANX TELECOM by HG CAPITAL are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Target: manx telecom

Acquirer: hg capital