Pitch Best Deal Mid-Cap 2020: Alliander – TReNT Glasvezel
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Name of the deal : Alliander acquires TReNT Glasvezel
Date : 9 January 2020
Published value : € 50 – 100 million
Buyer(s) : Alliander
Target : TReNT Glasvezel
Seller : TReNT Glasvezel shareholders
M&A Database: View more details of the deal
Involved firms and advisors sell side:
Amstone Tax Lawyers (Tax Advisory), SINCERIUS (Financial Due Diligence), Vriman M&A Lawyers (Legal Advisory Corporate M&A),
Involved firms and advisors target:
ABN AMRO (M&A Advisory), Conseiller (Legal Advisory)
Involved firms and advisors buy side:
Conseiller (Legal Advisory)
Pitch
Brief description deal / Deal outline
Alliander is a network operator that develops and manages energy and power grids in the Netherlands. The company handles the distribution of energy for approximately a third of the Netherlands and had over 5.7 million customer connections in 2018. As telecom infrastructure is considered critical for Alliander in order to safely operate its electricity and gas networks, Alliander chooses to own its telecom infrastructure. With the acquisition of TReNT Glasvezel, the leading player in dark fiber, Alliander complements its existing infrastructure in the Netherlands with a dense network of over 2,000 km of fiber in the eastern part of the Netherlands.
Why should this deal win the Award for Best Deal 2020?
On 9 January 2020, Stichting TReNT (“TReNT Foundation”) reached agreement with Alliander Corporate Ventures (“Alliander”) concerning the acquisition of TReNT Glasvezel (“TReNT”) in Enschede. We would like to endorse this deal for Best Deal Mid-Market 2020 as it is a great acquisition with a perfect outcome for all parties involved in an intricate setting with many different stakeholders. TReNT was founded in 1999 through a partnership between Universiteit Twente and OostNL with the aim of developing and maintaining a research network at the Business & Science Park. Today, TReNT manages more than 2,000 kilometers of fiber optic infrastructure which is used by companies, educational institutions and (semi) government organizations.
TReNT is the leading player in dark fiber optic networks for businesses in the eastern part of the Netherlands, offering clients an unshared, secure network between multiple locations. A distinguishing feature is that the user has full control over the use of the unique connection. The client provides the network equipment and determines the capacity and speed.
Alliander develops and manages energy networks in the Netherlands. For her, telecommunications are essential for the safe operation of her vital infrastructure: the electricity and gas networks. Alliander therefore chooses to own this telecom infrastructure itself. This is already the case in a large part of the service area of network operator Alliander. With the purchase of TReNT, Alliander will also have access to its own telecom infrastructure in the east of the Netherlands.
For TReNT, its clients, its employees and its other stakeholders, the acquisition by Alliander provides for a stable growth situation, as Alliander guarantees the continuity and availability of the essential and high-quality TReNT fiber optic network for its 550 business customers with more than 2,000 connections (40% of mobile traffic in the east of the Netherlands runs over TReNT’s network). In addition, the current director Wald Been and the 18 employees will continue to work at TReNT. Furthermore, all activities and the name TReNT will be continued from Enschede. Through this acquisition, area and network expansions can be continued. This desired growth is only possible with large investments, for which a strategically strong and wealthy partner has now been found.
The University of Twente and OostNL were involved in the establishment of the TReNT Foundation in 1999 with the aim of realizing a regional service-independent ICT fiber optic infrastructure that is made available to institutions and companies with large data flows. Through the take-over by Alliander, TReNT remains in semi-public ownership and the original goals of the University of Twente and OostNL are safeguarded. The deal was highly complex because there were many stakeholders involved and very specific transaction objectives. Stichting TReNT was advised by ABN AMRO (M&A) and Conseiller (Legal). Alliander was advised by Factor (M&A), Vriman (Legal), Sincerius (Financial) and Amstone (Tax).
Deal rationale:
Alliander is a network operator that develops and manages energy and power grids in the Netherlands. The company handles the distribution of energy for approximately a third of the Netherlands and had over 5.7 million customer connections in 2018.
As telecom infrastructure is considered critical for Alliander in order to safely operate its electricity and gas networks, Alliander chooses to own its telecom infrastructure.
With the acquisition of TReNT Glasvezel, Alliander complements its existing infrastructure in the Netherlands with a dense network of over 2,000 km of fibre in the eastern part of the Netherlands.
What is the impact of this deal for the company?
The acquisition by Alliander provides for a stable growth situation, as Alliander guarantees the continuity and availability of the essential and high-quality TReNT fiber optic network for its 550 business customers with more than 2,000 connections (40% of mobile traffic in the east of the Netherlands runs over TReNT’s network). In addition, the current director Wald Been and the 18 employees will continue to work at TReNT. Furthermore, all activities and the name TReNT will be continued from Enschede. Through this acquisition, area and network expansions can be continued. This desired growth is only possible with large investments, for which a strategically strong and wealthy partner has now been found.
What is the impact of this deal for the direct stakeholders?
The University of Twente and OostNL were involved in the establishment in 1999 of the TReNT Foundation with the aim of realizing a regional service-independent ICT fiber optic infrastructure that is made available to institutions and companies with large data flows. Through the take-over by Alliander, TReNT remains in semi-public ownership and the original goals of the University of Twente and OostNL are safeguarded.
What is the impact of this deal on society?
40% of mobile traffic in the east of the Netherlands runs over TReNT's fiber optic network. With the takeover by Alliander and its public shareholders, the availability of a secure public network in the Netherlands is assured in the long term. In addition, existing TReNT customers now benefit from the expertise and strength of the new owner.
What was most complex about this deal?
The deal was especially complex because there were many stakeholders involved, with very specific transaction objectives.
