Private equity firms The Riverside Company and Halder have acquired KEYMILE-Group. The transaction is the 21st acquisition for Riverside in 2011, and its third investment in Germany this year.
Former investor HANNOVER Finanz Group, as well as former CEO Dr-Ing Ziaedin Chahabadi, sold their stakes to the private equity firms. Riverside is the new majority shareholder, Halder holds a substantial share and KEYMILE management have increased its previous shareholdings.
With main offices in Germany and Switzerland and sales offices in five other countries, KEYMILE offers telecommunication solutions in more than 60 countries. In 2007 HANNOVER Finanz Group facilitated the orginal MBO and helped KEYMILE grow, also having acquired Aastra Networks GmbH in 2010 and establishing presence in South America during its time of ownership.
Today KEYMILE has become a leading supplier of communication solutions in the field of access and transmission systems. The flexible and robust IP-based multi-service access platforms allow telecommunication providers to supply a variety of voice and data services over copper and fibre optic cable. The simultaneous availability of IP/Ethernet and traditional TDM Technology ensures a smooth migration to Next Generation Network. The company’s customers include EWE Tel, htp, NTL, TelNet and international carriers such as GVT (Brazil) and Invitel (Hungary). Utility companies such as E.ON and the German and Swiss railways are also customers. KEYMILE has 430 employees and reported sales of €120 million in 2010.
“KEYMILE is an established telecommunications provider with a strong market position,” says Riverside Principal Peter Schaberger (pictured). “We were impressed and compelled by the company’s strong focus on R&D and its agility in responding to customer requests. Our goal moving forward will be to expand its product portfolio while strengthening its competitive position in existing markets.”
Thomas Fotteler, partner at Halder, points out the strategic fit: “Companies showing a leading market position, good management and a sustainable competitive edge are typical targets for Halder. KEYMILE is an innovative specialist for multi-access-systems with a high potential for internationalization – a precise match for our MBO experience in the SME segment.” he says.
“We thank HANNOVER Finanz Group for their cooperation and partnership to date, and we look forward to our new partnership with The Riverside Company and Halder to continue the growth story of KEYMILE. New markets and new technologies are our common goals, and we are firmly convinced that the know-how of our employees and our ongoing commitment to meet the highest standards of quality will continue to convince our customers,” says new CEO Björn Claaßen, who has also served as COO of KEYMILE. “Our new investors’ global network as well as their 20 years of experience in helping companies grow will surely help us further expand KEYMILE’s business.”
The Riverside team responsible for the investment was led by Munich-based Principal Peter Schaberger, and supported by Vice President Balázs Tahy and Senior Associate Sven Schulze.
The Halder team consisted of partners Thomas Fotteler and Michael Wahl, and Investment Manager Christian Muschalik.
Sascha Pfeiffer of DC Advisory Partners advised on the acquisition process, and finance for the transaction was provided by Raiffeisen International Bank, Bayerische Landesbank, LBBW und KBC.
