XLN calls on Clearwater
The Birmingham office of Clearwater Corporate Finance has advised XLN Telecom on its secondary buyout by mid-market private equity firm, ECI Partners. The deal will allow Zeus Private Equity exit its investment in XLN after three years.
XLN Telecom is the management team of the UK’s leading provider of telecoms services for small businesses.
Zeus, which originally backed a management buyout of XLN in January 2008, invested £6.63m for a majority stake. It now leaves with a 4.5 times investment multiple.
ECI Partners has now taken “a majority stake” in the businesses. The firm made “a significant commitment” through the deal 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.
London-based XLN’s management team, led by founder and group chief executive officer, Christian Nellemann, will continue to run the business following the transaction.
XLN, which was founded in 2002, specialises in providing small businesses in the UK with high quality, low-cost, fixed-line mobile and internet services. XLN’s revenues have grown substantially from £27m in 2007 to £54m in 2010.
