Cinven buys majority stake in Carlyle-backed ETC Group

Jun 6, 2022 | News | 0 comments

Private equity major Cinven has agreed to buy a majority stake in Carlyle portfolio business Euro Techno Com Group.

The buyout comes three years after Carlyle invested in the French telecom equipment distributor, marking the first deal for its €1.35bn Europe Technology Partners IV fund.

ETC, which was founded in 1993, specialises in the design, procurement and distribution of materials, tooling and equipment used by telecom operators and their subcontractors to install, build and maintain wireline and wireless infrastructure and other digital infrastructure.

Cinven said it identified ETC Group as an attractive investment given structural market tailwinds, including the continued need for telecom infrastructure investment and network maintenance spend, driven by growing data consumption trends, cloud and edge computing and increased connectivity.

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It also cited ETC’s leading position serving telecoms networking companies in a highly attractive and resilient market segment, and strong historical financial performance. The group currently generates more than €1bn of revenues.

Thomas Railhac, partner at Cinven, said, “Telecoms infrastructure and maintenance investment continues to show strong growth characteristics based on the need for operators to invest in the latest technologies and network resilience in order to meet the needs of their customers.

“ETC Group is well positioned to create value from these trends through its one-stop shop specialist approach, its international footprint and its strong reputation.”

Source: Alt Assets

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