Venture capital company 3i has pulled together a £39.2 million management buyin-out of specialist telecoms equipment vendor, Opt- Tel Holdings.
Opt-Tel provides equipment, network and facilities management services to new telecom operators and retail service providers, a market that has experienced unprecedented growth in the UK and Europe since deregulation.
Steven Nicholls of 3i explains why the firm chose to invest in Opt-Tel: "This is a specific niche of a sector that we have invested in already through other companies. It's an area we were focusing on to find business investment opportunities so were actively looking for deals in that market."
He continued: "What's key about this is the fact that what you have is a relatively small business, with a turnover of £13 million for the previous annual year, which is a strategic partner of the major alternative network operators enabling them to operate in a new market. It's driven by the energy, market spending desires of multi billion pound organisations [like AT&T and MCI Worldcom] to deliver their offerings to end-users. Without Opt-Tel they couldn't do that."
3i has put together a management team to run the operation and oversee the company's expansion into Europe.
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