In a recent strategic move, the Spanish telecommunications company Avatel has sold its Data Centers business to funds operated by Intermediate Capital Group (ICG) and Teras Capital. Although the details of the transaction have not been disclosed, this move marks a significant shift in Avatel’s business strategy.
Focus on Telecommunications Expansion
With the sale of its Data Center unit, Avatel reinforces its focus on its core business as a telecommunications operator. This strategy aligns with its recent expansion, having acquired 25 new local operators in 2023 for a total of 85 million euros. This expansion is part of a broader plan that has seen Avatel integrate more than 155 national operators since 2020, with a total investment of 650 million euros in the last three years.
Beta Data Center: A Subsidiary in Transition
Avatel’s Data Center division, known as Beta Data Center, was launched in late 2021. So far, it has not hosted other companies but has used its infrastructure to support its activity as a mobile virtual network operator (MVNO). The sale of this subsidiary to ICG and Teras Capital comes at a time when funds are showing growing interest in data center assets.
The New Owners
Both ICG and Teras Capital are well-known players in the telecommunications industry. Teras Capital has collaborated in Spain with Asterion through Olin Group, and ICG recently acquired a portfolio of data centers in London to be leased to the Vodafone group.
Avatel’s Strategy and Growth
With the sale of its Data Centers business, Avatel seeks to further consolidate its position in the telecommunications market, especially in regions with a strong presence of local operators such as Andalusia, the Valencian Community, and Murcia, and expand in areas such as Galicia, Extremadura, and Aragon. Its strategy follows the plan of organic and inorganic growth established in its roadmap.
This transaction signals a significant adjustment in Avatel’s strategy, allowing it to focus on its core business and strengthen its position as a key player in the telecommunications sector in Spain. The sale of Beta Data Center to ICG and Teras Capital represents not only an optimization of its resources but also an adaptation to market trends and growth opportunities in the telecommunications sector.
Source: El Economista and DataCenter Dynamics.