The EQT Infrastructure II Fund (“EQT Infrastructure II”) has agreed to acquire a majority stake in IslaLink Submarine Cables, SL (“IslaLink” or the “Company”), an independent and neutral operator of submarine fiber optic cables in and around Spain. IslaLink was acquired through a series of transactions from an investment entity related to the Cube Infrastructure Fund and from founders Alfonso Gajate and Ross Mullins. The founders and management team will remain with the Company.

IslaLink was founded in 1999 by Alfonso Gajate and Ross Mullins. IslaLink deploys and operates submarine cables on unserved routes to provide telecom operators with the managed broadband services required for their retail operations. The company owns and operates one of the main fiber optic cables connecting the Balearic Islands to mainland Spain and manages international IP traffic for clients such as the telecom operator Algérie Télécom. IslaLink is headquartered in Madrid, Spain, and has approximately 20 employees.

“EQT has been monitoring developments in the fiber telecommunications sector for a long time and is very excited about the acquisition of IslaLink. IslaLink is a well-managed business with an excellent management team and strong partnership-based relationships with its customers. We believe that data traffic over fiber optic cables will continue to grow, and we see substantial value creation opportunities both in IslaLink’s existing businesses and through new expansion and growth initiatives,” says Daniel Pérez Wikmark, Head of Spain and Portugal at EQT Partners, Investment Advisor to EQT Infrastructure II. “The acquisition will also be EQT’s second investment in Spain, and we are exploring investment opportunities in both the Spanish and Portuguese markets,” continues Daniel Pérez Wikmark.

The transaction is expected to close in the fourth quarter of 2014, subject to customary antitrust approvals.