Pequot Capital Management and New Venture Partners, the New Jersey-based venture capital operation controlled by UK private equity secondaries specialist Coller Capital, have divested wireless communications company Celiant Corporation to Andrew Corporation in a $470m deal.
Coller Capital backed the buyout of Lucent New Ventures Group in December 2001, receiving an 80 per cent stake for an investment believed to be in the region of $100m. Celiant had previously been spun out of Lucent Technologies in June 2001. In October 2001, Pequot Private Equity, a division of Pequot Capital Management, invested $50m in Celiant.
Shortly after completing the original deal in January, Jeremy Coller was very optimistic about the possibilities for Celiant. Speaking to Private Equity International, he commented: “Celiant is profitable. It’s EBIT positive and growing, and it has a five-year order backlog.”
The total consideration paid by Andrew Corporation is $469.8m, which will be satisfied by a cash payment of $203m and 16m Andrew Corporation shares, valued at just under $267m. On completion of the acquisition, New Venture Partners, the company formed to acquire Lucent New Ventures Group in January, and Pequot Capital Management will between them control 17 per cent of the Celiant shares.