TELECABLE DE ASTURIAS acquired by EUSKALTEL
Context
Euskaltel has entered into a definitive agreement to acquire 100% of Telecable from Zegona Communications plc. The transaction's capital structure incorporates the assumption of €245 million in net debt alongside a structured earn-out framework providing an additional contingent payment of up to €15 million tied to the crystallization of specific tax assets. The consideration mix is engineered via a combination of cash and equity, under which Zegona will roll over its proceeds to secure a 15% strategic minority equity stake in Euskaltel's expanded capital. The acquisition thesis represents a major regional consolidation play within the Spanish telecommunications sector. By absorbing Telecable, Euskaltel successfully executes its northern expansion strategy, seamlessly connecting its core Basque infrastructure with a high-performance cable network that holds a market-leading position in the Asturias region. The strategic rationale focuses on driving significant post-merger operational and financial synergies, unlocking cost-reduction frameworks to enhance combined margin profitability.
It is worth noting that the fund Zegona Communications took control of Telecable De Asturias through an LBO in 2015.
TELECABLE DE ASTURIAS, which reported an EBITDA margin of in 2017, is valued in this transaction at an EV/EBITDA multiple of , representing a to the average currently observed in the TMT (Tech, Media, Telecom) sector (14.9x).
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Target
Telecable de Asturias S.A. operates as a leading regional provider within the telecommunications and digital entertainment sector, commanding a dominant market-leading position in the Asturias region of northwest Spain. The company’s business model centers on delivering an integrated, quad-play suite of electronic communication services, including fixed and mobile telephony, high-speed broadband internet, digital television, and specialized corporate network services. The entity's value proposition is built upon its extensive, localized network footprint and a deeply entrenched reputation for operational reliability and service quality. Serving as a critical infrastructure gateway for both residential and enterprise customers, Telecable differentiates itself in a highly competitive landscape through its advanced technical capabilities and localized customer support. Its commercial strategy is oriented toward continuous infrastructure modernization and service innovation, allowing the platform to dynamically adapt to shifting consumer entertainment habits and enterprise data demands while securing high customer retention and sustainable regional growth.
Ent. Value
Equity Value
Multiples
EV / Revenue
EV / EBITDA
EV / EBIT
Historical Financials (EUR)
Other operations with TELECABLE DE ASTURIAS
| Date | Acquirer | Target | Country | Sector |
|---|---|---|---|---|
| 08/2015 | ZEGONA COMMUNICATIONS | TELECABLE DE ASTURIAS | SPAIN | Operators |
REFERENCES
Valuation range: EV 500M - 1.5b EUR
Revenue range: 100M - 200M EUR
EBITDA range: 50M - 100M EUR
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Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.
Target: telecable de asturias
Acquirer: euskaltel