Apax Eyes Full Control of Odido in €6.5bn Deal

Apax Partners is reportedly in advanced discussions to acquire the stake held by Warburg Pincus in the Dutch telecommunications operator Odido. This potential transaction, valued at approximately €6.5 billion, would see Apax assume complete private equity ownership of the significant Dutch telecom player.

Sources close to the matter suggest that an agreement could be finalized within days, though negotiations are ongoing and the terms are subject to change. The move follows an earlier attempt by both private equity firms to take Odido public, a plan that was shelved several months ago due to prevailing instability in European equity markets. That proposed initial public offering was anticipated to be one of the year's most substantial listings in the region.

Odido, formerly operating under the T-Mobile Netherlands banner, is a major force in the Dutch market. Last year, the company reported revenues nearing €2.4 billion and serves over 7.5 million customers. It stands as a leading provider of fiber broadband services, a critical segment within the Netherlands' digital infrastructure, where it competes fiercely with established players like KPN and VodafoneZiggo.

The acquisition of Odido by Apax and Warburg Pincus from Deutsche Telekom and Tele2 occurred in 2022 for €5.1 billion. Since then, the owners have focused on bolstering Odido's presence, particularly in the high-growth broadband sector. This strategic push aims to capture a larger share of a market experiencing continuous demand for faster and more reliable internet connectivity.

The Dutch telecom operator has faced recent challenges, including a significant cyber attack that led to the public exposure of personal data belonging to millions of its subscribers. This incident prompted a public apology from the company's chief executive and underscored the heightened security risks in the digital services sector. Despite these headwinds, the company's strategic importance in the Netherlands' telecommunications ecosystem remains substantial.

The potential sale to Apax represents a full exit for Warburg Pincus from an investment made approximately four years ago. For Apax, securing sole control of Odido would solidify its position in the Dutch broadband market, a sector where industry analysts foresee continued opportunities for market share expansion. The Dutch telecommunications market, valued in the tens of billions of euros, continues to attract significant investor interest, driven by ongoing network upgrades and increasing data consumption.

It is worth noting that Odido's ownership has also attracted attention from other potential suitors, including Saudi Arabia's state-backed telecommunications group STC. However, the current negotiations appear to be focused on a transaction between the two existing private equity partners.