Providence Equity Partners to take sole ownership of Kabel Deutschland
12 December 2005
Unterfoehring, Germany - Today the owners of
Europe's largest cable company Kabel Deutschland announced a major
change in the Company's shareholder structure. Providence
Equity Partners will acquire the entire shareholdings of Apax
Partners and Goldman Sachs Capital Partners and with about 95%
ownership become the sole shareholder of Kabel Deutschland
alongside management.
Apax, Goldman Sachs Capital Partners, and Providence Equity
Partners jointly acquired Kabel Deutschland in March 2003 as a
carve-out from Deutsche Telekom AG. Under their ownership the
Company transitioned from a traditional analog cable TV company
into an innovative provider of cable services including pay-TV,
Broadband Internet and Telephony, investing significantly into the
network.
After close to three years of joint ownership, Apax and Goldman
Sachs Capital Partners are seeking liquidity for their shareholding
while Providence Equity has committed itself to further support the
Company and accompany the roll-out of its new services.
"Kabel Deutschland is Europe's largest cable operator and is
extremely well positioned to capitalize on the substantial growth
in broadband internet and digital television expected in the coming
years" said John Hahn, Head of Providence Equity's European
operations. "Our partnership with our co-investors Apax and
Goldman Sachs Capital Partners has been very productive and Kabel
Deutschland's management has successfully transformed the company
into a growth-oriented business with a strong customer focus.
Providence Equity is fully committed to further expand Kabel
Deutschland's product scope and digital footprint for the benefit
of our customers."
Kabel Deutschland will accelerate the upgrade of its cable
network and invest approximatively €500 million over the next three
years to offer triple play services to close to 90% of its 15.3
million homes passed in Germany.
The terms of the agreement signed today have not been
disclosed. The transaction is subject to customary approval
of the relevant governmental authorities and is expected to close
in the first quarter of 2006.
KDG operates the cable networks in 13 German states and
generated sales of more than 1 bn Euros in the financial year
2004/2005 (End March 05).
Media contacts:
Apax Partners
Ira Wülfing Kommunikation
Ira Wülfing
+49 89 2000 30 33
ira@wuelfing-kommunikation.de
Goldman Sachs
David Kamenetzky
+49 69 7532 2644
David.kamenetzky@gs.com
Providence Equity Partners
Andrew Cole
+1-212-687-8080
acole@sardverb.com
Roland Klein
+44 7776 162 997
roland.klein@cnc-ag.com
About Apax:
Apax Partners is one of the world's leading private equity
investment groups, operating across the United States, Europe and
Israel. Apax Partners has raised or advised approximately $20
billion around the world. With more than 30 years of direct
investing experience, Apax Partners' Funds provide long-term equity
financing to build and strengthen world-class companies. It pursues
a multi-stage equity investment strategy, investing in late
venture, growth capital and buyouts.
Apax Partners' Funds invest in companies across its global
sectors of Tech & Telecoms, Retail & Consumer, Media,
Healthcare and Financial & Business Services.
For additional information, see: www.apax.com
About Goldman Sachs:
Goldman Sachs is a leading global investment banking, securities
and investment management firm that provides a wide range of
services worldwide to a substantial and diversified client base
that includes corporations, financial institutions, governments and
high net worth individuals. Founded in 1869, it is one
of the oldest and largest investment banking firms. The
firm is headquartered in New York and maintains offices in London,
Frankfurt, Tokyo , Hong Kong and other major financial centers
around the world. The Frankfurt office is responsible
for the business of Goldman Sachs in Germany and
Austria. It opened in 1990 and employs around 350
people in Investment Banking, Equities, Fixed Income and Investment
Management. Customers in Germany range from large corporations and
the family-owned Mittelstand companies which form the backbone of
the German economy to the German Federal and State
Governments. Goldman Sachs has a German banking
licence, is a member of the Frankfurt Stock Exchange and the
Bundesverband Deutscher Banken and belongs to the bidding group of
Bund auctions.
Goldman Sachs Capital Partners, the firm's private equity funds
business, has been active in Europe since 1993. In
April 2005, Goldman Sachs closed the GS Capital Partners V Fund
with $8.5 billion in committed capital. GS Capital
Partners V is the current primary investment vehicle for Goldman
Sachs to make privately negotiated equity investments.
Recent investments in Europe include Prysmian Cable, ISS, Ahlsell
and Eutelsat. Notable investments in Germany include
Kabel Deutschland, Messer Griesheim, Cognis and Wincor Nixdorf.
About Providence Equity Partner Inc.:
Providence Equity Partners Inc. is a global private investment
firm specializing in equity investments in media, communications
and information companies around the world. The principals of
Providence Equity manage funds with over $9.0 billion in equity
commitments, including Providence Equity Partners V, a $4.25
billion private equity fund, and have invested in more than 80
companies operating in over 20 countries since the firm's inception
in 1990. Significant investments include VoiceStream Wireless,
PanAmSat, Western Wireless, eircom, Casema, Comhem,
Metro-Goldwyn-Mayer, ProSiebenSat.1, Ono, Warner Music Group,
Recoletos, and Bresnan Broadband Holdings. Providence Equity has
offices in Providence, Rhode Island, London, England, and New York,
New York.