Due diligence of dark fibre provider Metroweb

The problem

Stirling Square Capital Partners (SSCP), a leading private equity fund, entered the process for the sale of Metroweb – the largest metropolitan area dark fibre provider in Europe. The company has an extensive distribution and access network in Milan, Italy.

SSCP required an independent technical due diligence on the quality of the fibre assets owned by the company, in addition to a commercial due diligence, including the review of a 10-year business plan with a detailed FTTH (GPON) case.

The solution

Analysys Mason's project team covered the full spectrum of due diligence competencies. We conducted management interviews and reviewed substantial information regarding network assets and established contract agreements (long-term availability contracts).

We carried out a strategic evaluation of the company, focusing on its positioning in the market and on the uniqueness of its network assets. We performed a detailed assessment of network infrastructure, analysing technical factors such as the quality of fibre cables used and the network management functions.

Analysys Mason completed a detailed market analysis, reviewing the market and analysing the future demand for fibre in the addressable market. In accordance with company's operating and business model, we reviewed the business plan prepared by the management and developed arguments to validate the upside transition from copper to fibre.

The result

As a result of our analysis, shareholders gained a detailed and clear picture of the assets and their potential. SSCP concluded the sale for EUR436 million – more than EUR200 million above the initial 2006 value.

See also how Analysys Mason supported Italian multi-utility companies in the evaluation and sale of their fibre assets.