Värde Partners to exit undersea cable owner GCX to 3i in $512m deal


3i Infrastructure has agreed a $512m deal to acquire communications service provider GCX from a consortium formed by Värde Partners, Bardin Hill Investment and Portsea Asset Management.

The firm said GCX owns one of the world’s largest private subsea fiber optic networks and provides high-bandwidth connectivity to a customers including including hyperscalers, telecommunications operators, new media providers and enterprises.

Its 66,000km of cables span 46 countries from North America to Asia, with a particularly strong position on the Europe-Asia and Intra-Asia routes.

Sandeep Chandak, managing director at Värde Partners, said, “Having initially invested as a bondholder in GCX, we were pleased to support the company’s recapitalization and continue working with the business in our capacity as a shareholder.

“GCX’s successful restructuring, led by Värde in 2019, reflected our belief in GCX asset’s long-term value and the underlying strength of the business. As the company’s largest shareholder, we have worked closely with Bardin Hill, Portsea and other stakeholders to unlock the potential of the business by enhancing its operating model and capitalizing on the critical role GCX plays connecting markets across the world.”

Värde completed its largest ever private equity fundraise in 2019 by pulling in $2.47bn of commitments for its 13th flagship investment vehicle.

Late last year the firm raced to a target-busting $1.6bn final close for The Värde Dislocation Fund in just five months, easily beating its $1bn goal in the process.

The deal followed 3i recent purchase of Dutch food and drink container brand Mepal as it looks to grow the business across Europe.

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