Portobello Capital Acquires BT's Spanish ICT Services Business

Madrid-based private equity fund Portobello Capital has acquired BT’s Spanish managed ICT services business including its domestic network infrastructure.

Posted Wednesday, December 18th 2019
Portobello Capital Acquires BT's Spanish ICT Services Business

Luis Peñarrocha

The transaction is subject to regulatory approval and is expected to complete in the first half of 2020.

The Spanish business, which will be led by members of the current management team, provides networking services to around 600 major businesses, including most of the IBEX 35 index companies, and generated revenue of €270m revenue in the 2018/19 financial year. Assets in the transaction include a 5,600 kilometer owned and leased optical fibre network, fully owned city fibre networks in Barcelona and Madrid and three data centres.

BT will retain a presence in Spain with offices in Madrid and Barcelona, access points to connect to its global network and its cyber security operations centre. BT will continue to have access to the domestic infrastructure via a wholesale agreement. The Spanish business will also become a reseller of BT’s global products under a resale agreement.

Portobello Capital was advised on the transaction by Jones Day, Natixis Partners, KPMG and Oliver Wyman. BT was advised by Credit Suisse International, Allen & Overy and EY.

Luis Peñarrocha (pictured), a founding partner of Portobello Capital, said: “We are very pleased to invest in one of the leading providers of managed telecommunications services to the corporate market in Spain. We look forward to continued investment in the development of the business for the benefit of new and existing customers in the region.”

Bas Burger, CEO of global at BT, said: “The transaction is great for BT, for our people and for our customers. Through agreements with the Spanish business, it provides continuity to both our multinational and local customers.”