IK completes €190m networks acquisition

Nordic technology investor CapMan has sold a Swedish telecoms network provider to Industri Kapital.

Swedia Networks, a communications contractor controlled by the €2.1 billion Industri Kapital 2000 Fund, has acquired telecoms network provider Eltel Networks for approximately €190 million ($240 million).

Eltel was sold by funds advised by Nordic private equity house CapMan and Finnish firm Fenno Management, which took an 83 percent stake in Eltel in June 2001.

Industri Kapital's merger of Eltel with Swedia is intended to create a leading infranet company in the Nordic region. The merged group will have annual sales of approximately €600 million. The transaction is subject to competition authorities’ approval and is expected to complete in November 2004.

The deal is IK’s second Nordic acquisition in as many months following the €300 million purchase of Norwegian discount retailer Terje Høili in August.

The firm is in the process of finalising its IK 2003 Fund, which is expected to close on between €800 million and €1 billion later this month. IK currently manages approximately €4 billion in commitments from European and global investors.

A source close to the firm confirmed that the IK 2000 Fund was close to being fully committed through 'one more large transaction or two small ones'.

CapMan manages funds with approximately €1.83 billion in total capital. The firm opened an office in Norway in February 2004 and recently completed its first technology investment in the country. The firm has approximately 80 employees in offices in Helsinki, Stockholm, Copenhagen and Oslo.