VC/PE Firms Buy GTS Central Europe

Group Menatep Ltd. has sold its GTS Central Europe, a provider of telecom services to the business and wholesale markets in Central Europe, to a consortium that includes Columbia Capital, M/C Venture Partners, Innova Capital, HarbourVest Partners, Oak Investment Partners and Bessemer Venture Partners. No financial terms were disclosed, except that GTS CE generated around EUR 400 million in 2007 revenue, and EUR 70 million of EBITDA.

 

PRESS RELEASE

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 Tam