Key takeaways
- EXA Infrastructure has agreed to acquire Global Communication Net AD (GCN), a Bulgarian telecommunications company, announced in London on September 5th 2024
- GCN owns a national fibreoptic network of over 2,500km plus 100km of metro network in Sofia
- The deal gives EXA access to interconnection points in Turkey, Greece, Romania, North Macedonia, Serbia and Georgia
- EXA Infrastructure now owns 155,000km of fibre network infrastructure across 37 countries
- Completion is expected in the 4th quarter of 2024, subject to customary conditions
Agreement to acquire GCN
London, September 5th 2024 – EXA Infrastructure has agreed to acquire Global Communication Net AD (GCN), a Bulgarian telecommunications company offering services on its owned national fibreoptic network of over 2,500km. This acquisition marks a significant expansion of EXA Infrastructure's strategic assets in South-Eastern Europe., The transaction was facilitated by DB Capital Ltd. as lead advisors to the majority shareholder of GCN alongside KND Partnership Ltd. and Sofia Connect EAD as one of the sellers. Completion is subject to certain customary conditions and is expected to be completed in the 4th quarter of 2024.
EXA Infrastructure provides the critical modern infrastructure and unrivalled engineering expertise that serves as the backbone for digital and economic growth. The deal will see EXA Infrastructure acquire the full suite of GCN's products and services, including dark fibre, wavelength and colocation services.
Expansion into South-Eastern Europe
With the addition of GCN's network, EXA Infrastructure will expand its extensive footprint into the strategically important region of South-Eastern Europe, providing key access to international interconnection points in Turkey, Greece, Romania, North Macedonia, Serbia and Georgia. This region has grown in significance due to the traffic volumes entering Europe from Asia and the Middle East, and also due to the greater focus on network redundancy and alternative route provisioning given the lack of diversity around the Red Sea.
As a result of the deal, EXA Infrastructure now owns 155,000km of fibre network infrastructure across 37 countries, strengthening its position as the largest owned network connecting Europe to the rest of the world.
What the executives said
"The GCN network consists of over 2,500km of owned duct and cable connecting Sofia with all the borders neighbouring Bulgaria as well as the Black Sea coast cities of Balchik, Varna and Burgas. Each of these locations are strategically important for existing and planned subsea cables, creating a natural east-west corridor. EXA Infrastructure also gains 100km of metro network connecting key data centres and business zones within Sofia. By adding the GCN assets into our expanding network, we continue to offer our customers more route options and more scalability traffic into and around Europe." said Steve Roberts, SVP of network investments and products at EXA Infrastructure.
What GCN brings
- Over 2,500km of owned duct and cable connecting Sofia with all the borders neighbouring Bulgaria
- Reach to the Black Sea coast cities of Balchik, Varna and Burgas, creating a natural east-west corridor
- 100km of metro network connecting key data centres and business zones within Sofia
- Dark fibre, wavelength and colocation services
Jim Fagan, CEO, EXA Infrastructure, added: "This acquisition further extends our network presence in South-Eastern Europe, and continues to differentiate our capabilities in serving customers for their critical infrastructure needs across the breadth of Europe. We have near term plans to expand our network both organically and through acquisition to bring more value, options and services to our customers in an ever changing digital world."
Dimitar Babanski of DB Capital and acting CFO of GCN and Yuliy Nushev, CEO of Sofia Connect EAD, commented on the transaction: "We are pleased to have facilitated this strategic acquisition. The integration of GCN's assets into EXA Infrastructure's expansive network will undoubtedly enhance connectivity options and scalability for businesses across Europe. This deal underscores our commitment to fostering growth and innovation in the telecommunications sector."
Departure of GCN CEO Dimiter Angelov
After nearly two decades of strategic leadership, Mr. Dimiter Angelov, current CEO and ex-majority shareholder of GCN, has announced his planned departure as the company prepares for its acquisition by EXA Infrastructure. Under Mr. Angelov's stewardship, GCN not only evolved from a modest fiber optic network operator into a thriving and resilient enterprise but also spearheaded the construction of Bulgaria’s government backbone network spanning the whole of the country., Reflecting on his journey, Mr. Angelov expressed pride in the company’s accomplishments and confidence that, once the transition is complete, EXA Infrastructure will continue to uphold the legacy he has built. He believes the values and vision that have defined GCN will endure as the company embarks on this new chapter.
About EXA Infrastructure
EXA Infrastructure is an award-winning portfolio company of I Squared Capital and the largest dedicated digital infrastructure platform connecting Europe and North America.
With over 20 years of experience in building resilient networks, EXA Infrastructure provides the critical modern infrastructure and unrivalled engineering expertise that serves as the backbone for digital and economic growth. This includes mission-critical networks for governments and enterprises, hyperscale infrastructure for the world’s most innovative and influential businesses, and ultra-low latency, high bandwidth networks for financial, gaming and broadcast services.
Headquartered in London, the company owns 155,000 kilometres of fibre network across 37 countries, including six transatlantic cables and the lowest latency link between Europe and North America. For more information, see exainfra.net
