MBO: Deutsche Beteiligungs AG invests in netzkontor nord
Frankfurt am Main — Deutsche Beteiligungs AG (DBAG) acquires an interest in netzkontor nord GmbH (netzkontor), a provider of services for the telecommunications industry. As part of a management buy-out (MBO), DBAG ECF, which is managed by DBAG, will acquire the majority of shares in netzkontor. The remaining shares will remain with the founders and previous sole owners Dirk Müller and Peter Schmidt, who will continue to work for the company as managing partners. For its co-investment alongside DBAG ECF, DBAG will invest up to EUR 4.6 million from its balance sheet. The purchase agreement was signed at the end of December and is expected to be completed in January 2018. The parties have agreed not to disclose the purchase price.
netzkontor is already the second investment of the DBAG ECF since the start of its first new investment period, DBAG ECF I for short, in June 2017. This means that more than a quarter of the committed capital has been drawn down.
netzkontor (www.netzkontor-nord.de) was founded in 2008 and operates with around 100 employees in two business areas. Under the brand name “netzkontor”, the company offers services related to the planning and monitoring of the construction of fiber optic networks. The OpenXS subsidiary handles network management for fiber-optic network operators. The regional focus so far has been on Schleswig-Holstein. In addition to its headquarters in Flensburg, netzkontor operates from two other locations. With the recently opened branch in Schwerin, the company is also active in Mecklenburg-Vorpommern. In 2017, netzkontor generated sales of around eight million euros.
Demand for fast Internet connections by private households and companies is increasing. So far, however, broadband expansion in Germany has been sluggish by European standards. It is therefore also supported by subsidies from the federal budget. More than 40 million households in Germany are not yet connected to a fiber optic line. In this favorable market environment, netzkontor benefits from its good reputation as a reliable quality provider and from its expertise in project management. The company’s regional expansion and the diversification of its customer base are also to be driven forward by corporate acquisitions.
“With the MBO of netzkontor, DBAG is investing in a well-positioned service company in a fast-growing market,” said Torsten Grede, Spokesman of the Board of Management of Deutsche Beteiligungs AG on the occasion of the signing of the agreement. “We intend to support the company in its further development with our expertise from DBAG’s existing three investments in this sector.”
“netzkontor should continue to benefit from the positive market trend and the growing demand for broadband connections in the future,” said Peter Schmidt, managing partner of netzkontor. “In DBAG, we have found an experienced partner with whose support the development steps required for this will be even easier for us.”
Deutsche Beteiligungs AG, a listed company, initiates closed-end private equity funds and invests alongside DBAG funds in well-positioned medium-sized companies with development potential. DBAG focuses on industrial sectors in which German SMEs are particularly strong by international standards. With this experience, know-how and equity, it strengthens the portfolio companies in implementing a long-term, value-enhancing corporate strategy. The entrepreneurial investment approach makes DBAG a sought-after investment partner in the German-speaking region. The capital managed and advised by the DBAG Group amounts to approximately 1.8 billion euros.