Apax in talks to acquire Warburg Pincus stake in €6.5bn Dutch telecoms group Odido

Apax and Warburg Pincus are reportedly in advanced talks to acquire the Dutch telecoms group Odido, potentially gaining sole private equity ownership of the company. The valuation of the potential acquisition is estimated at around €6.5 billion, according to a Financial Times report. An agreement could be finalized within days, though discussions are still ongoing and terms may still change.

This transaction comes after Apax and Warburg Pincus abandoned initial plans to float Odido, citing instability in European equity markets. Odido, previously known as T-Mobile Netherlands, generated nearly €2.4 billion in revenue last year and serves more than 7.5 million customers, making it one of the Netherlands' leading fiber broadband providers.

The company was acquired by Apax and Warburg Pincus from Deutsche Telekom and Tele2 in 2022 for €5.1 billion. Since then, they have invested in expanding their presence in the Dutch telecommunications market, particularly in broadband, where they face competition from KPN and VodafoneZiggo. A cyber attack in 2022 led to the public disclosure of personal information belonging to millions of Odido customers, prompting a CEO apology.

The private equity owners have also attracted interest from potential buyers, including Saudi Arabia's state-backed telecommunications group STC. A sale to Apax would provide an exit for Warburg Pincus, while allowing Apax to gain full control of a business it already owns alongside its fellow sponsor. This deal would also give Apax further exposure to the Dutch broadband market, where analysts believe there is continued potential for Odido to increase its market share. The companies involved declined to comment on the ongoing discussions.