Litorina Kapital sells Swe-dish to trade buyer for $56m

Military wireless communications company Datapath has bought competitor Swe-dish Satellite System from Litorina Kapital, registering a four times return on its investment after seven years.

A Litorina Kapital-led consortium has sold Swe-dish Satellite System, a satellite broadband company to trade buyer Datapath for $56 million (€41 million).

The Nordic buyout firm said in a statement it had registered a 4 times return on its investment for its second fund.

Swe-Dish produces quick-to-air satellite terminals for live transmission of video, data, internet and voice content from anywhere in the world. Its clients include broadcasters CNN and the BBC and military organisations such as the United Nations, NATO and the company’s biggest customer the US Department of Defense. The company has offices in Stockholm, Dubai, Hong Kong, London and Washington.

Harold Kaiser, from Litorina Kapital, said: “In this particular business we wanted to build the global footprint of this company to be able to attract a trade buyer with a good price and so we held it for our maximum period of seven years. When we first invested in it, the company had a client base of two thirds broadcasters but we targeted the defence business which now accounts for more than 70 percent of sales.” 

The buyout firm invested in SWE-DISH in April 2000 and the company has grown by 27 percent per year since then. The company had a turnover of SK 286 million ($43 million, €31 million) in 2006.

The buyout firm held the first close of its third fund last month on SK 843 million, and is targeting a SK 1.25 billion final close. Last month it sold Q-Matic, the company it jointly owned with 3i, to Altor for an undisclosed sum, making a nine times return on its initial investment with a 150 percent internal rate of return.