Buyer for an Internet service provider in Germany

• Revenue: 1-2M EUR
• EBITDA: > 10%
• Employees: not decisive
• Location of the target: Germany
• Reason for acquisition: The company is a large enterprise active in providing internet services. It wants to grow in Germany via acquisitions
• #CFIE ITB098

The buyer is a large ISP company that wants to grow by doing acquisitions of similar companies. The organization has a history of M&A deals and is concentrated only on target companies that have clear potential for further growth of the business model. It uses to buy ISPs with key advantages such as high technical reliability, extremely fast technical support and personal contact management, but more important, the potential of these companies has to be very high, after the deal is done, the buyer wants to expand the coverage of those ISP services in the same city and in other cities as well. Target company should be active internet service providing and should have required or preferred knowledge and experience for usage of modern fibre technologies. An ideal target option could be a local or niche player that needs cash and technology for growth and which business model could be copied into other region(s)/countries. The location of the target could be in all Europe, with a preference for Germany, Czech Republic or Austria. As for possible synergies to bring to target, the buyer is ready to share its technical and commercial expertise with acquired team and vice versa would be ready to implement European experience in its core business. Funds for the deal are available, no leverage, the deal will be financed from internal cash-flow generated by current businesses.

The buyer is a large ISP company that has a presence on the market for circa 10 years, it has employed more than 500 people and delivers its services from more than 50 branches across Europe. The services provided are of a high quality due to the experienced high-tech team, modern equipment and own fibre network that is spread across many regions. Primarily, the company delivers telecommunications services, internet being the main service, but its offer includes also providing of fixed line telephony, IPTV, VPN services, smart-video-control, data transfer, organization of virtual private networks, protection of business applications and SaaS solutions. These services and solutions are addressed both to private users as well as to corporate users such as telecom operators or other offices that need internet connection and telephony.

For installing the internet, the company is using the technology Fiber To The Building, this technology allows for each building to be supplied with a separate optical backbone and clients get unlimited bandwidth and the possibility to expand the list of services. Once the fast internet is installed, can also be arranged an internet telephony service for office and prices come with various packages options. Benefits that clients can have together with the installation of internet telephony service are: call forwarding, voice mail, conferencing, multichannel number. Clients can also benefit from Wi-Fi hot spots provided by the company, in the service being included a communication channel for the organization and the installation and configuration of the Wi-Fi equipment.

The buyer is looking to acquire a company delivers services such as:

• Internet
• Telephony
• IPTV
• VPN
• Video-Control
• Data Transfer
• Business Applications Security

• The buyer is a large enterprise active in providing Internet Services
• The company has decided to enlarge its activities in Germany and is looking to buy another company with similar activities and products
• Target companies should could be local or niche players whose business model could be copied into other regions