mynth
02/2014

MANX TELECOM went public

UNITED KINGDOM Telecom / Operators EV £100–350M

Context

Private equity firm HgCapital, in close coordination with joint venture partner CPS Partners, has successfully executed the full exit of its investment in Manx Telecom through an initial public offering (IPO). Fully underwritten, the public listing transaction will result in the official admission and trading of the company's shares on London’s Alternative Investment Market (AIM). This public market realization concludes a successful three-and-a-half-year holding period for HgCapital's clients (including the listed HgCapital Trust plc) and represents the fifth exit from the 2009-vintage HgCapital 6 Fund. The IPO successfully validates the execution of the original investment thesis driven by the financial sponsors. Throughout their ownership, the backing partners implemented a comprehensive corporate transformation, initially building a top-tier management team before driving accelerated organic revenue growth via high-quality, attractively priced customer packages and instituting rigorous cost-control initiatives. This disciplined operational strategy enhanced profit growth and maintained a highly cash-generative profile, which facilitated a successful leveraged recapitalization of the business in March 2013. As a newly public company, Manx Telecom is strategically positioned to efficiently capture expanding off-island digital opportunities, particularly in high-end data center provision.

It is worth noting that the fund Hg Capital took control of Manx Telecom through an LBO in 2010.

MANX TELECOM, which reported an EBITDA margin of [members only] in 2013, is valued in this transaction at an EV/EBITDA multiple of 5x–12x, representing a discount to the average currently observed in the TMT (Tech, Media, Telecom) sector (14.7x).

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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

2x–6x

EV / EBITDA

5x–12x

EV / EBIT

10x–18x

Historical Financials (GBP)

Year
Rev
EBITDA
EBIT
2013
£50–100M
£10–30M
£5–25M
2012
£50–100M
£10–30M
£5–25M

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
06/2010HG CAPITALMANX TELECOMUNITED KINGDOMOperators

REFERENCES

Valuation range: EV £100–350M

Revenue range: £50–100M

EBITDA range: £10–30M

EV/Revenue range: 2x - 6x

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 PUBLIC MARKETS (IPO) 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