Altice France and MSIP establish UltraEdge in €764m deal

Altice France has forged a strategic partnership with Morgan Stanley Infrastructure Partners (MSIP) to launch UltraEdge, a new venture set to become a leading independent distributed colocation provider in France. This collaboration involves Altice offloading a 70% stake in the enterprise valued at €764 million, which translates to an EBITDA multiple of approximately 29x.

The initiative includes a build-to-suit agreement with SFR, expected to generate €175 million over seven years, enhancing data storage and connectivity services across the nation. With an installed capacity of over 45MW and roughly 33,000 square meters of office space linked by SFR’s extensive fiber network, UltraEdge is poised to elevate the French telecommunication landscape.

Yacine Saidji highlighted the access to SFR’s broad fiber infrastructure as a significant boon for UltraEdge’s expansion prospects. The transaction, which is yet to receive regulatory approvals and fulfill standard conditions, is anticipated to conclude by the first half of 2024.

This move aligns with Altice’s financial strategy to reduce its debt burden while concurrently investing in advanced data center infrastructure to improve services for its customers. With a portfolio of 257 sites, UltraEdge is set to enhance infrastructure quality and density in key cities, operating independently with substantial capacity and owned office space.

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