Mobeus Equity Partners has sold its investment in Entanet to CityFibre Infrastructure for £29 million, delivering an initial 2.5x return on investment.
This return on investment has the potential to increase to more than 2.7x over the next two years. Initial IRR to shareholders is 38.7%, potentially increasing to 40.9%.
Entanet is a wholesale communications infrastructure provider and uses third party networks to deliver a connectivity and telecommunication products and services to small business customers.
Mobeus backed the management buyout of Entanet led by its chief executive Elsa Chen and her management team in 2014, committing a total of £9.5 million and introducing chairman Richard Atkins to the Board.
Since then, Entanet has refined its business model and introduced new products and services, resulting in an increase in annual revenues from £27 million to £36 million at the time of the sale.
Clive Austin, Mobeus Partner, who sat on the Entanet board, said: "This investment has proven to be an outstanding success. In the three years since the MBO, Elsa and the team have worked incredibly hard to transform Entanet from an entrepreneurial enterprise to a highly professional part of a publicly quoted company. I am delighted for the team and believe that they, and Entanet, will continue to thrive in this next phase of their development within CityFibre”.
Elsa Chen, chief executive of Entanet, added: “Mobeus brought a wealth of experience and have shown great support to Entanet in the last three years. The relationship they have built with us is deeper than that of an investor. I see Mobeus as a true business partner, which supported management 100% in doing what is right for the business. This is such a critical part of our success today.”