Mid Europa

Mid Europa Completes Acquisition of intive

Mid Europa Partners, the leading private equity investor in Central and Eastern Europe, announced today that it has completed the acquisition of intive S.A.

intive is a leading international provider of software development services with over 1,600 qualified specialists in 19 offices worldwide. Combining design and technology, intive has become the digitalisation partner of choice for many international corporations across multiple industry verticals including automotive, high-tech, industrial, media, as well as consumer and financial services.

Mid Europa Agrees to Sell Invitel

Mid Europa Partners ("Mid Europa"), the leading private equity firm in Central and South Eastern Europe, announced today that it has reached an agreement for the sale of its investment in Invitel Group to CEE Equity Partners ("CEE Equity"), the investment advisor to the China CEE Investment Co-operation Fund. The transaction is subject to customary closing conditions, including competition clearance, and is expected to complete in the first quarter of 2017.

Invitel is the second-largest incumbent fixed line telecommunications and broadband Internet services provider with more than 1 million homes passed in Hungary, serving both residential and corporate customers.

David Blunck, the CEO of Invitel, commented: "Under Mid Europa's leadership we have strengthened Invitel's position in the Hungarian market and we are grateful for their support. We look forward to further developing the business under the ownership of CEE Equity."

Rothschild acted as exclusive financial adviser and Dechert as legal counsel to Mid Europa.

Slovenia’s Telemach joins Mid Europa’s United Group

Slovenian cableco Telemach has joined the United Group, which includes a number of telecoms operators across eastern Europe. The United Group, which is majority owned by Mid Europa Partners (MEP) and the European Bank for Reconstruction and Development (EBRD), already includes Serbia Broadband (SBB), Telemach Bosnia & Herzegovina, DTH platform Total TV (which covers Slovenia, Croatia, Bosnia & Herzegovina, Serbia, Montenegro and Macedonia) and a further 15 small operators, including Absolut OK, KDS NS, Jet TV, Beogrid, Telekabel, VI-NET, and ArtNet. Commenting on the development, Telemach director Marko Ster said that sharing best practice and seeking synergies would help improve services.

According to the United Group, Telemach customers will be able to see the first benefits from 1 May, when the group’s operators will start to offer free calls between Slovenia, Serbia and Bosnia & Herzegovina. MEP has been active in the region since 2007, initially through its investment in SBB and later through its acquisition of Telemach, which was previously owned by Liberty Global Inc (LGI). The United Group currently claims 1.65 million revenue generating units (RGUs) and presides over a unique infrastructure that covers a large part of Slovenia, Serbia and Bosnia & Herzegovina and includes over 10,000km of fibre-optic networks, connecting to Belgrade, Zagreb, Ljubljana and Sarajevo. In the twelve months ended 31 December 2012 the United Group generated revenues of EUR180 million (USD234.4 million), with capital expenditure exceeding EUR50 million.

EMP Europe sells Telemach to UGC

UnitedGlobalCom, Inc. ("UGC") (Nasdaq: UCOMA) today announced that, through one of its affiliates, it reached an agreement with EMP Europe, a leading private equity firm dedicated to Central and Eastern Europe, and several other Slovenian shareholders to acquire their interests in Telemach d.o.o. ("Telemach").

Telemach is the largest broadband communications provider in Slovenia with over 100,000 cable TV subscribers and 10,000 broadband Internet customers.

Since its foundation in 1999, Telemach has realized significant financial and operational growth. Revenue has grown over 25% per annum over the last three years and more than 85% of its network has been upgraded to 862 MHz. In addition, approximately two-thirds of Telemach's network supports broadband Internet and digital television services.

UGC will acquire a 100% interest in Telemach based on a total enterprise value of €74 million, which represents a multiple of approximately 8.2 times expected 2004 fourth quarter annualized normalized EBITDA. UGC will pay cash of approximately €71 million for its 100% interest.

The transaction is subject to review by the Slovenian competition authorities and expected to close in the first quarter of 2005.

Mike Fries, President and Chief Executive Officer of UGC, said, "This acquisition represents a unique opportunity to take a leadership position in a new Central and Eastern European market for UGC. Slovenia, which recently joined the EU, has the highest GDP per capita in the region and is adjacent to Austria and Hungary where we currently have large operations. Telemach has upgraded most of its network and, as the largest operator in the country, has achieved good scale and profitability."

Thierry Baudon, Chief Executive Officer of EMP Europe, said "Since EMP became the majority shareholder of Telemach in 2000, Telemach developed from a small cable operator with less than 20,000 subscribers, into Slovenia's undisputed market leader with more than 100,000 video subscribers and operating margins in excess of 45%. Over the last five years, Telemach upgraded its network, introduced new services such as high-speed Internet access and digital video services, thereby changing the public's perception of cable services from a utility-type operator to an innovative company providing a wide range of value-added products and services. We are delighted to have successfully developed the company and wish Telemach and its new owners well for the future."

Rothschild advised EMP Europe on this transaction.