On Tuesday, Ardian, the global private equity giant that manages $114 billion in client assets and is mostly owned by its own employees, announced that it will acquire all of Míla, Iceland’s largest telecommunications infrastructure provider. The seller is Síminn Group, Iceland’s primary telecoms operator. Price and other deal terms were not announced, and the transaction is yet to be cleared by local competition authorities in Iceland.
Míla represents Ardian Infrastructure‘s sixth investment in the Nordic region, its fourth investment in telecommunications, but its first-ever in Iceland. In a statement announcing the deal, Ardian said the acquisition would provide sector and geographic diversification to its global portfolio.
Unprecedented
Míla is Iceland’s largest telecommunications infrastructure company, having been formed in 2007 as the sole infrastructure entity of listed Icelandic telecom Síminn. Today it owns a comprehensive network comprised of fixed broadband, mobile access and backhaul covering the entire country. According to the companies, this transaction is uniquely significant in the telecommunications sector, in that the current national owner is selling the entire collection of digital infrastructure, including both active and passive equipment. Ardian says it will support Míla’s efforts to enhance Icelandic connectivity through substantial investments that will enable the roll out of additional fiber and 5G technology.
“We are very proud to have secured this unique investment, which is a perfect example of Ardian’s vision and leadership in telecommunications infrastructure,” said Gonzague Boutry, Managing Director in the Ardian Infrastructure team. “We believe that this acquisition, which comprises an entire integrated network, including passive and active equipment, will pave the way for similar transactions within the telecommunications industry.”
Síminn will remain Míla’s long-term anchor tenant, and Míla will become the leading platform for wholesale services in Iceland.
“We are delighted to have signed this transaction with Ardian as a buyer of Mila, but more importantly, as a long-term infrastructure partner,” Síminn CEO Orri Hauksson said. “Síminn will continue to be a strategic customer, and Míla will now become fully independent with an opportunity to flourish on its own.”
“To be recognized by a world-leading private investment house is evidence of the strength of our business,” said Mila CEO Jón Ríkharð Kristjánsson. “At the same time, this is an exciting turning point for Míla. With Ardian Infrastructure‘s support, Mila as an independent infrastructure provider with holistic service offerings can help to enhance the competitiveness of Iceland‘s telecommunications market. Ardian‘s financial support, experience and knowledge will enable us to develop our network even further and fulfill our mission to connect Iceland to the future.
“Alongside Ardian, several Icelandic pension funds will have the opportunity to invest in Míla,” said Dr. Daniel von der Schulenburg, Managing Director and Head of Ardian Infrastructure for Germany, Benelux and Northern Europe. “We are excited to expand into Iceland accompanied by our local partners. The Nordic countries are a core region for the Ardian Infrastructure team, with strong fundamentals and attractive investment opportunities. For us, Míla is a long-term investment and a platform for growth. We intend to invest continuously into Iceland’s coverage and look forward to continuing to deliver top quality service and connectivity solutions. We will work together with Mila‘s management team to build an even more progressive electronic communications company.”
