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).
