Fast-growing telecoms business sold
TELECOMS business XLN has been sold by private equity firm ECI Partners to its management team.
XLN, which is creating 300 new jobs in Yorkshire following a £40m investment, was the first investment from ECI’s ninth fund and this exit has yielded ECI a 3x return. The deal is backed by Blackstone’s credit business GSO Capital Partners.
Earlier this year, it was announced that XLN, headquartered in London, has acquired a 14,000 sq ft area at One North Bank in Sheffield city centre as a new base. The £40m investment in Sheffield will be made over the next five years.
XLN is one of the fastest growing companies in the UK and supplies phone lines, broadband, mobile, card processing and energy to the UK’s rapidly growing small business community.
Former CEO of Travis Perkins and of Brakes, Frank McKay has been appointed as the new chairman of XLN, taking over from the out-going chairman John Donaldson, who will remain on the board as a non-executive director.
Christian Nellemann, founder and CEO of XLN said: “I would like to thank Tom and his team at ECI for the significant value that they added to help XLN become the leading supplier of services to small businesses.
“The backing of GSO, a blue chip investor, is a strong endorsement of our entrepreneurial approach, our high quality management team and the opportunities for acquisitive and organic growth that we have.
“I look forward to widening our crusade to help more of Britain’s Heroes of the Economy, the micro SMEs, get a better deal on business services and receive the world class customer service that they deserve.”
Squire Patton Boggs acted for the shareholders of XLN Telecom (including ECI) in the sale of the company to Blackstone. The team was led by Jonathan Jones and included Jayne Aarons, Peter Morley, Richard Morton, Andy Fordham, Jess Kolhorn, Holly Hardaker and Emma Perez.
The acquisition vehicle was advised by Catalyst Corporate Finance.
John Donaldson, out-going chairman of XLN added: “ECI has been very supportive over past four years of investment in building a strong management team throughout the business product diversification process with the acquisition of CPS and focus on improving customer service and customer retention.
“Christian has continued to lead the business with entrepreneurial flair and passion. The business is well placed for the next stage of its development partnered by GSO who no doubt will be supportive of continued growth in XLN’s core business as well as further product diversification.”
