PE-backed billing firm buys rival

MACH, the Luxembourg-based billing services provider owned by Advent International and Providence Equity Partners, has acquired Danish rival Dan Net for €160m.

MACH, owned by Advent International and Providence Equity Partners, has acquired Dan Net in a deal funded by new debt facilities underwritten by Societe Generale. The completion of the transaction is subject to regulatory approval.

The two private equity firms acquired MACH in November 2002. Based in Luxembourg, it has offices in Germany, India, Asia and the Americas. A provider of inter-operator billing services, it has more than 250 telecommunications customers around the world. The firm’s services include mobile roaming, financial clearing, inter-connection and WLAN clearing.   

Denmark-based Dan Net has offices in Singapore, the UK, India, the United Arab Emirates and Egypt. It also provides inter-operator billing services to more than 150 telecom operators, and also has an EDI (electronic data interchange) and e-business integration division.

“Jointly we will provide the most innovative solutions for all operators needs in inter-operator billing services,” said Juergen Appel, chief executive of MACH. This transaction lays the foundation for continued growth and will ensure we can continue to support our clients with high quality and advanced services.”

Advent, which has €4.8 billion in capital and offices in 13 countries, has made 75 investments in the communications and business services sectors since it was established in 1984. Earlier this year it acquired BTC, Bulgaria’s formerly state-owned national telecom provider.

Providence Equity Partners, which has offices in Rhode Island, New York and London, specialises in equity investments in telecom and media companies. It manages funds with over $5 billion in commitments and has invested in 75 firms since 1992.

Alfred Berg, the Nordic ABN AMRO subsidiary, acted as exclusive financial adviser to MACH and its shareholders on the deal.