Clearwater Corporate Finance has advised the management team of small business telecoms provider XLN Telecom on its secondary buyout by private equity firm ECI Partners.
The deal sees Zeus Private Equity exit its investment in XLN after three years at a 4.5x investment multiple.
The investment is accompanied by a significant commitment by ECI to support XLN’s ongoing business development and acquisition programme.
As a result XLN will have the funds available to more than double the size of the business through acquisitions.
In the last year, the company has acquired and integrated OneBill Telecom into its operations with additional investment from Zeus Private Equity.
Clearwater partner Nick Jones led the deal team for Clearwater, supported by assistant director Richard Shaw and director Dan Bowtell.
Mr Jones said: “ECI’s investment is the latest milestone in XLN’s expansion plans and provides a platform for its strong and well respected management team to achieve notable organic and acquisitory growth.
“Taking into account continued consolidation in the UK and European telecoms sector, with larger, cash-rich companies picking up smaller rivals, this investment puts XLN in a very strong position to further build on its acquisition of OneBill in 2009.”
XLN’s management team, led by founder and group chief executive Christian Nellemann, will continue to run the business following the transaction.
Founded in 2002, XLN specialises in providing small businesses in the UK with high quality, low-cost, fixed-line mobile and internet services.
In the last three years, its revenues have grown substantially from £27 million in 2007 to £54 million in 2010.