EQT's GlobalConnect Divestiture: A Case Study in Identifying Undervalued Assets in Private Equity Exits

In the ever-evolving landscape of private equity, the strategic divestiture of assets often serves as a barometer for market sentiment and capital allocation priorities. Swedish private equity giant EQT's recent decision to sell its stake in GlobalConnect—a Nordic digital infrastructure leader—offers a compelling case study in identifying undervalued assets within the private equity exit ecosystem. With a potential valuation of up to €8 billion, the transaction underscores broader trends in capital recycling, sector-specific demand, and the interplay between private equity and corporate acquirers in valuing digital infrastructure.

Strategic Rationale: Capital Recycling and Sector Resilience

EQT's decision to divest GlobalConnect aligns with its 2025 strategy of accelerating exits to unlock value for investors. The firm reported €13 billion in realizations during the first half of 2025, a significant increase from prior years, driven by high-profile exits such as the €15 billion valuation of IFSEQT AB (publ) Half-year Report 2025^[1]. By selling GlobalConnect, EQT aims to redeploy capital into emerging themes like healthcare and digital infrastructure, sectors poised for long-term growth amid accelerating digitalizationEQT Mulls Sale of Stake in $7.5 Billion Nordic Fiber Arm^[5].

The Nordic digital infrastructure market itself has demonstrated resilience. Despite a 35% quarter-on-quarter decline in software and ICT services deal volumes in Q1 2025, the quality of transactions remained robust, with large, strategic deals dominating the landscapeCarner Q1/2025 Nordic Software and ICT Services Report^[6]. GlobalConnect's operations—spanning 244,000 km of fiber and 35,000 sqm of data centers—position it as a critical player in a sector where demand for connectivity is surging due to AI adoption, cloud computing, and 5G expansionEQT AB (publ) Half-year Report 2025^[1].

Valuation Metrics: A Premium for Private Equity?

The potential sale of GlobalConnect raises questions about its valuation relative to industry benchmarks. In 2024, GlobalConnect reported revenue of €609 million and adjusted EBITDA of €307 millionEQT Mulls Sale of Stake in $7.5 Billion Nordic Fiber Arm^[5], translating to an EV/EBITDA multiple of approximately 26x at the proposed €8 billion valuation. This compares favorably to broader M&A trends in 2025, where private equity buyers globally paid a median EV/EBITDA of 11.2x in Europe and 12.8x in the U.S., significantly higher than corporate acquirers' 8.5x and 9.9x, respectivelyM&A EV/EBITDA Multiples 2025: PE vs Corporate by Sector^[7].

The premium private equity firms are willing to pay reflects their confidence in the long-term cash flow potential of digital infrastructure assets. For GlobalConnect, this is further bolstered by its diversified customer base—serving 907,000 households and 30,000 enterprises—and its role in managing over half of the Nordic region's data trafficEQT kicks off sale of Nordic broadband and data centre business^[2]. The firm's prior minority stake sale to Mubadala in 2022, which leveraged the Abu Dhabi sovereign wealth fund's expertise in digital infrastructure, also signaled strong institutional demand for such assetsEQT sells stake in GlobalConnect to Mubadala of Abu Dhabi^[4].

Undervaluation Risks and Market Dynamics

While GlobalConnect's valuation appears robust, undervaluation risks persist in the private equity exit landscape. The Nordic market, though resilient, has seen mixed signals: while buyout volumes in Norway surged in Q1 2025, Denmark's activity remained constrained by macroeconomic headwindsNordic Private Equity Market Update Q1'25^[3]. Additionally, the decision to sell the entire stake—rather than pursuing a partial exit—suggests EQT may be capitalizing on a window of favorable market conditions. Goldman Sachs, managing the sale, is likely targeting strategic buyers, including global infrastructure funds or tech conglomerates seeking to expand their Nordic footprintEQT kicks off sale of Nordic broadband and data centre business^[2].

A critical factor is the comparison to corporate acquirers, who typically pay lower multiples due to stricter return hurdles. If GlobalConnect's final sale price aligns with private equity's 11.2x median multiple (vs. corporate buyers' 8.5x), the transaction could represent an undervaluation opportunity for acquirers seeking long-term, stable cash flows in a high-growth sectorM&A EV/EBITDA Multiples 2025: PE vs Corporate by Sector^[7].

Conclusion: A Blueprint for Value Creation

EQT's GlobalConnect divestiture exemplifies how private equity firms leverage market dynamics to identify and monetize undervalued assets. By timing exits to capitalize on sector-specific demand and structural premiums paid by private equity buyers, firms like EQT can optimize returns while addressing evolving investor expectations for liquidity. For investors, the transaction highlights the importance of scrutinizing valuation metrics and sector trends to uncover opportunities where private equity's strategic vision outpaces traditional corporate benchmarks.

As the Nordic digital infrastructure sector continues to mature, transactions like GlobalConnect's sale will likely set new standards for valuing connectivity assets in an increasingly data-driven world.