Global alternative asset manager The Carlyle Group has entered into exclusive negotiations for the acquisition of Sagemcom, a global high-technology group specialising in broadband communications and energy activities, from the Gores Group.
Carlyle would invest through Carlyle Europe Partners III (CEP III), a EUR5.4 billion buyout fund focused on investment opportunities in Europe, and would own 70% of Sagemcom whilst management and employees would hold the remaining 30%. Further financial terms of the transaction were not disclosed.
Sagemcom is a European manufacturer of high-end digital TV set-top boxes, very high speed broadband residential terminals and advanced electricity meters, as well as various other telecommunications products. Sagemcom has more than 6,000 employees worldwide, and posted sales of EUR1.4 billion in 2010. The Company holds strong market positions in all its activities and has expanded significantly in its core markets for the last three years.
Benoît Colas, Managing Director, The Carlyle Group, says: "We are very excited to have the opportunity to become a new shareholder in Sagemcom alongside its talented management team and employees. Sagemcom has an excellent track record in winning new customers and growing revenues in a competitive market. This demonstrates its commitment to customer relationships, technological innovation and superior time-to-market capabilities. We believe the team, led by Patrick Sévian, will be able to capture the tremendous growth opportunities ahead of us, notably in the broadband and energy markets. Carlyle’s deep telecom industry expertise and financial strength will be great resources for the future development of Sagemcom."
Fernando Goni, Managing Director of The Gores Group, says: “We want to thank the Sagemcom team for their hard work in building and growing such a successful business over the past few years. We enjoyed working with the team in Paris and are proud to have enabled the company to achieve this successful track record. We are confident that Sagemcom will continue to flourish and wish management and Carlyle success.”
Patrick Sévian, President of Sagemcom says: "We are very excited at the prospect of partnering with Carlyle as we believe this will enable us to consolidate and strengthen the ambitions of Sagemcom, both through organic growth and acquisitions. In addition, we are proud that The Carlyle Group, a leading global institution in private equity, shares our employee ownership culture, which we consider as one of the engines of our dynamism, and which would be increased from 25 to 30% under the new structure.”
