HgCapital has acquired a majority stake in Manx Telecom for £158.8 million.

European private equity firm HgCapital has acquired a majority stake in Manx Telecom for £158.8 million.

Isle of Man-based telecommunications and internet provider Manx Telecom employs 300 people and is a part of the Telefónica group. In the year ending December 2009, Manx reported revenues of £69 million with EBITDA of £25 million.

The acquisition, which is subject to regulatory clearance, is expected to be completed by the end of June. Alex King, head of TMT at HgCapital who led the transaction, says that he sees ‘ this as very much a growth investment for HgCapital and will continue to invest in supporting the organic growth of the business and in the form of bolt on acquisitions’.

Chris Hall, managing director at Manx Telecom, says: ‘We are delighted that HgCapital and CPS Partners have chosen to make this significant investment in Manx Telecom, and in the Manx economy.’