Deal round up 06/11/02

3i chosen for KPN Telemedia deal; Barclays PE backs Direct Group MBO; Eutex completes E7.8m second round

3i chosen for KPN Telemedia deal


UK private equity firm 3i has been chosen to proceed with an offer for Telemedia, the directory services business of Dutch telecom operator KPN. 3i is expected to bid in the region of E500m for the business, which was put up for sale earlier this year.


Other firms competing to acquire Telemedia included Texas Pacific Group and Eurazeo, the private equity division of Lazard. KPN is selling the business as part of efforts to reduce its debt pile. The company has reduced its debt to E15bn from a high of E23bn. A final announcement on the sale is expected in the next ten days.


Barclays PE backs Direct Group MBO


European mid-market investor Barclays Private Equity has backed the management buyout of UK-based business process outsourcing (BPO) business Direct Group. Barclays PE has acquired the 47 per cent stake previously held by company founder John Dunhill. The financial details of the transaction have not been disclosed.


Direct Group provides BPO services for UK financial and insurance businesses, including HBoS, Reg Vardy and Dixon Motor Holdings. Direct has increased its revenue by over 85 per cent in the last two years. Barclays Leveraged Finance has provided additional financing for the transaction.


Eutex completes E7.8m second round


Dusseldorf-based European Telco Exchange (Eutex), a trading platform for network capacity for the telecoms sector, has completed a second round of financing as it seeks to expand its services into new regional markets.


Norddeutsche Innovations und Beteiligungsgesellschaft (NIB) was the lead investor in the second round, joining existing investor Neuhaus Techno Nord. New investors included Berlin-based IMH Venture and Ventegis Capital. The E7.8m investment is the third largest German venture capital investment in telecommunications in 2002.