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Empresas y finanzas

Private Equity Consortium Acquires GTS Central Europe


    GTS Central Europe (GTS CE), a subsidiary of Group Menatep Limited

    (GML), has sold 100 percent of the shares in GTS CE to a consortium of

    private equity funds, including Columbia Capital, M/C Venture Partners

    Innova Capital, HarbourVest Partners, Oak Investment Partners and

    Bessemer Venture Partners (the Consortium).
    GTS CE is an alternative telecom service operator with operations

    principally in the Czech Republic, Poland, Hungary, Romania and

    Slovakia. The company focuses on the business and wholesale customer

    segments. GTS CE also operates in the Ukraine, Latvia, Slovenia

    Bulgaria, Croatia and Serbia. GTS CE achieved approximately EUR 400m of

    revenues and EUR 70m of EBITDA in 2007.
    The Consortium is a group of private equity investors led by Columbia

    Capital and M/C Venture Partners, both US-based investors with extensive

    experience in the communications and technology-enabled services

    sectors, and Innova Capital, a leading private equity group focused on

    Central Europe.
    In conjunction with the transaction, Adam Sawicki joins GTS CE as CEO

    from TeliaSonera International Carrier, where he served as vice

    president and head of West Europe and North America.
    KBC Securities acted as a sole financial advisor to the seller in the

    transaction, while Squire Sanders & Dempsey LLP acted as legal counsel

    to the Consortium and Clifford Chance acted as counsel to GML.
    "We are proud of GTS CE´s successful

    acquisitions and development and the resulting value we have created for

    our shareholders," said Tamás

    Polgár, former chief executive officer, GTS

    CE. "We believe that the company is now

    positioned to most effectively capture the growth of the business

    communication market and that the new shareholders´ telecom experience and capabilities will enhance these developments."
    "With its unique combination of cross-border

    and access networks, GTS CE is one of the most interesting

    telecommunication operators in Central and Eastern Europe," said Adam Sawicki. "This transaction enables

    the company to enter into a new phase of development. We strongly

    believe that combining our broad regional expertise with the extensive

    industry and international knowledge our new shareholders bring to the

    equation will ensure further expansion of GTS CE in the dynamic

    telecommunications marketplace."
    About GTS CE
    GTS CE is a full service provider of integrated telecommunications

    solutions for those countries of Central and Eastern Europe lying

    between Frankfurt and Istanbul. GTS CE boasts an extensive regional

    infrastructure inclusive of a large number of fully integrated national

    and local metropolitan area networks and collocation facilities. GTS CE

    continues to deepen its commercial and geographic footprint through

    organic investment in network and a strategy of regional consolidation.

    It provides fixed voice, data, IP (Internet Protocol), MPLS and DSL

    broadband services to business and residential customers, as well as

    services to other telecoms carriers, mobile operators and providers of

    content, applications and internet services. GTS CE enjoys network to

    network interfaces in Vienna, Frankfurt and London with many of the

    global carriers for both simple and complex data, voice and network

    solutions. GTS´s primary countries of

    operation are Czech, Poland, Hungary, Slovakia and Romania with

    considerable further investment in networks and access infrastructure

    bridging many of the neighbouring countries including but not limited to

    the Ukraine, Turkey, the Baltic States, Russia, Croatia, Slovenia

    Bulgaria, Serbia, Macedonia, Bosnia Herzegovina, Moldova and Montenegro.

    Most recently GTS CE has established competences in serving many of the

    Central Asia and Caucus economies including Azerbajian, Khazahkstan

    Georgia, Armenia and Uzbekistan whose many international fiber networks

    transit Central and Eastern Europe before connection to the many OECD

    hubs.
    About Columbia Capital
    Columbia Capital is a venture capital firm specializing in broadband

    wireless, media, and enterprise services investing. Since its formation

    in 1989, Columbia has taken a sector-focused approach to investing, and

    has funded over 130 companies in the US and select international

    markets. Columbia´s sector focus allows it to create value throughout a

    company´s lifecycle "“ from early stage investments, to large growth stage financings and

    special situations. Columbia manages over $2 billion in committed

    capital, including its current fund of $560 million. Representative

    investments include: ICG Communications, NuVox, FDN, Zayo Bandwidth, XM

    Satellite Radio, and MetroPCS. For more information, visit Columbia

    Capital at www.colcap.com.
    About M/C Venture Partners
    M/C Venture Partners is a venture capital firm focused exclusively on

    the communications, media, and information technology sectors. The firm

    has invested over $1.5 billion into nearly 100 companies in those

    sectors. Companies M/C has backed include Brooks Fiber, ICG

    Communications, Lightower (formerly National Grid Wireless), Melita

    Cable, MetroPCS, NuVox, Phone Michigan, Revol Wireless, and Zayo

    Broadband. The firm has strong institutional backing from leading

    pension funds and endowments as well as a long track record of success.

    M/C Venture Partners has offices in Boston, San Francisco and London.

    For more information, visit www.mcventurepartners.com.
    About Innova Capital
    Innova Capital (www.innovacap.com)

    is one of the leading private equity firms in Central Europe. Since 1994

    Innova has raised four investment funds of total size of approx. EUR 500

    million. Innova´s strategy is centered on

    building companies into regional market leaders that can compete with

    the best in their fields worldwide. Innova funds are primarily invested

    in financial services, business services (including telecommunication

    media and IT) and industrial production. To date, Innova has invested

    over EUR 300 million in 35 companies across Central Europe, including

    several leading mobile operators in Romania, Slovakia, Bulgaria and

    Moldova, PolCard (Poland´s dominant

    transaction processing company), Euronet (independent operator of ATM´s

    now listed on Nasdaq), Expander (Poland´s

    leading personal finance advisor, with GE as a minority shareholder)

    Energis (Poland´s leading

    business-to-business telecom operator) or Mercor (CEE leader in fire

    safety, listed on Warsaw Stock Exchange).