Eon Communications raises £265m for UK broadband networks

The funding was successful despite the doldrums in the telecommunication sector at the moment.

Eon Communications has raised a fund of £265m for building broadband communications in UK and Scotland.

Two main consortium of investors was led by Madison Dearborn Partners, who invested £57m and TD Capital Communications Partners who contributed £30m. Incepta Partners also came in to the tune of £13m, along with GE Capital Telecom which pledged £10m. Debt funding accounted for the balance.

It is a particularly difficult time to raise funds in the telecom market and Eon’s fundraising took about one year to complete. The £265m fundraising represents one of the biggest financings for a start-up telecom company seen so far this year.

Eon’s broadband network is expected to take three years to build, and will establish broadband communications to 325,000 houses in the UK and Scotland.