Telefónica strengthens alliance with Pontegadea to up ownership in submarine cable provider Telxius Telecom

Press release from Telefónica 

This is a machine translation of the original press release issued in Spanish.

Telefónica and Pontegadea consolidate their alliance in Telxius Telecom to strengthen their commitment to submarine cables, an asset that has proven critical during the pandemic and whose contribution will be equally fundamental in the development of the new digital era. The two partners increase their stake in Telxius Telecom, a global telecommunications infrastructure company, through the acquisition of 40% of the capital of Telxius Telecom, which to date was in the hands of KKR.

With this operation, Telefónica will increase its participation to 70% and Pontegadea will increase it to 30%. The acquisition is carried out for an estimated amount of 215.7 million euros, pending, among others, the corresponding adjustments derived from the sale of the tower business of Telxius Telecom to American Tower in 2021.

A critical infrastructure

Telxius Telecom has one of the largest cable networks with the greatest potential in the world. It is an international network of high-capacity fiber optic submarine cables, which reaches an extension of 94,000 kilometers, including new generation systems such as Marea, Brusa and Mistral, as well as SAm-1, the system that connects from the year 2000 United States with Latin America.

Through its Tier 1 IP network, Telxius Telecom provides direct internet connectivity with coverage of 93 points of presence and 27 docking stations in 23 countries, which successfully connects the United States, Latin America and Europe with the rest of the world. . In addition, Telxius Telecom has an extensive offer of capacity, colocation and security services.

This global ecosystem of state-of-the-art network infrastructures and facilities meets the needs of numerous business customers and organizations that require high capacity and low latency to develop their activity, including large Hyperscalers. Cable networks have proven to be critical in responding to challenging environments, such as during the pandemic, and will be equally critical to the development of the metaverse, web3, and the new digital age.

The closing of the transaction is subject to obtaining the corresponding regulatory and competition authorizations.