Zeus PE set for huge return on XLM deal

MANCHESTER-based Zeus Private Equity is in line for a bumper return on its investment in a fast-growing telecoms firm.

London-based XLN telecoms – which is majority owned by Zeus – is in line for sale for more than £100m.

Zeus PE, which invested £6.63m in January 2008 for a majority shareholding, has appointed Deloitte to handle the sale process, which is set to kick off in earnest in the new year.

XLN, based in Vauxhall, provides telecoms services to small businesses and has 120,000 customers.

The company was founded by former Ernst & Young Entrepreneur of the Year Christian Nellemann and Anthony Karibian

Formed in 2002 after deregulation of the telecoms sector, the company offers SMEs a 40% saving on their phone bills. More recently it has begain offering mobile phone deals too.

Backed by Zeus – which funded the acquisition of OneBill Telecom earlier this year, XLM’s turnover has soared in the last two years and is expected to top £50m next year.

Zeus Private Equity was formed in December 2005  is led by respected North West deal-maker Gary Tipper. The XLM deal would be the firm’s maiden exit.