CyberCity secures $53m second round

New investor Lehman Brothers Communications Fund joins existing investors in this second round of financing.

Danish broadband services provider CyberCity has secured a $53m second round of financing from Lehman Brothers Communications Fund and original investors Advent International, Merrill Lynch Private Equity, Danske eVentures (a subsidiary of Danske Bank) and Four Seasons Venture.

In March last year CyberCity was acquired by a syndicate of investors led by Advent International and since then it has shifted its focus from being a traditional dial-up ISP (internet service provider) to a next generation communications provider.

CyberCity focuses on delivering innovative broadband and managed services and in the past year has concentrated on its DSL (Digital Subscriber Line) service in Denmark and on initiating DSL services in Norway and Sweden. The company now has more than 14,000 operational DSL customers in Denmark, Norway and Sweden.

The company’s turnover for 2000 was approximately E30m, a 68 per cent increase on 1999. CyberCity now wants to extend its product range and geographical scope and intends to pursue a programme of selective acquisition and expansion both in its home market and in Norway and Sweden.

John McEvoy, managing director of Lehman Brothers Communications Fund will join CyberCity’s board of directors. He explained: “We have looked at numerous broadband opportunities throughout Europe and decided to invest in CyberCity for its ability to execute on its business plan and its excellent position to expand its platform of broadband services throughout the Scandinavian region.”

John Bernstein, a director of Advent International, said: “This financing is at an increased value to our acquisition of the company in March 2000 – an achievement made possible by CyberCity’s fast growth and sound business model.”