DEEN
Enlargement of customer base
€18.MN
EQUITY INVESTMENT
€55MN
REVENUES 2016/2017 (EXP.)
260
EMPLOYEES 2016/2017

KEY FACTS AT A GLANCE

  • Growth in private and business customer base
  • Growth accelerated due to acquisitions
  • Revenues and earnings up considerably again year-on-year

INEXIO Informationstechnologie und Telekommunikation KGaA

INVESTMENT BY
DBAG ECF

€18.0MN

DBAG'S INTEREST

€7.5MN

GROWTH FINANCING
SHAREHOLDERS:
DBAG ECF

16.4%

EQUITY SHARE BELONGING TO DBAG

6.9%

OTHER SHAREHOLDERS

83.6%

FIRST INVESTED

MAY 2013

REVENUES IN €MN

 

44

 

2014/2015

 

51

 

2015/2016

 

55

 

2016/2017 (EXP.)

As of 30 June 2018

>1.000

new private customers per month

Since our initial investment in 2013, inexio has developed enormously – both by organic growth and market consolidation. As we see it, inexio is a textbook case of a highly successful private equity investment in which a talented management team receives backing and a promising business model is driven forward.

GUSTAV EGGER
MANAGING DIRECTOR

PROFILE

inexio Informationstechnologie und Telekommunikation KGaA invests in the development and expansion of an efficient telecommunications infrastructure in several federal states in Germany. In addition to the federal states of Saarland and Rhineland-Palatinate, the company focuses on Bavaria, Baden-Württemberg, Lower Saxony and the former East German states. inexio has a proprietary and steadily growing fibre-optic and municipal network covering more than 6,500 kilometres, as well as six company-owned data centres. The company offers the full spectrum of telecommunications and IT services, from carrier services to assuming all telecommunications, IT and data centre services. Although the company’s original focus was on business customers, this has since been surpassed by faster revenue growth in high-speed internet connections for private customers; this area of the business is growing at an annual rate running into the double digits.

POTENTIAL FOR DEVELOPMENT

inexio is continuously growing its customer base by investing in fast fibre-optic networks, i.e. in an increasingly available and increasingly adopted infrastructure with long-term availability, to secure attractive sources of future revenue that are also predictable. The barriers to entering the market in which inexio operates are typically high. inexio also has a highly motivated and experienced management team, as well as the structures and capacities needed to take advantage of current market opportunities.

An additional key success factor is the speed at which inexio can expand its own network, since particularly in rural areas, the first to invest invariably gets access to the customers. The capital invested by DBAG and the fund allows inexio to maintain the brisk pace at which it invests and to accelerate growth by acquiring further companies. Thus, in recent years, inexio has already acquired several smaller companies with a network and customers in Bavaria and has continued its regional expansion.

FINANCIAL YEAR 2016/2017

In the financial year 2016/2017 (as at 30 September), inexio’s sustainable and profitable customer business developed very positively. The company achieved its forecast growth. Private customer contracts increased to more than 80,000 and are increasing by more than 1,000 per month. inexio also gained new business customers in all of its newly acquired network areas. Revenues and earnings will significantly exceed the prior-year values once again. Profitability also improved because, after a period of strong growth, inexio is now making use of economies of scale. In addition to organic growth, inexio was able to acquire and integrate two additional companies, Komnexx (Lower Saxony) and smartDSL (Bavaria), in the last financial year.

OUTLOOK AND OBJECTIVES

As far as 2017/2018 is concerned, inexio plans to continue growing its infrastructure and customer numbers. Revenues and earnings should grow accordingly and should again exceed the previous year’s figures. As well as expanding its own network, the acquisition of other companies will remain a key issue on the telecommunications market, which is in the process of consolidating.

Responsible team member

Gustav Egger
Gustav Egger

Managing Director

Gustav Egger
Name:
Gustav Egger
Telephone:
+49 69 95787-300
E-Mail:

Gustav Egger

Managing Director

Gustav Egger joined Deutsche Beteiligungs AG in 1989 and has been a Managing Director since 1992.

After receiving his degree in Engineering Management with a major in Mechanical Engineering from the University of Berlin, he spent six years at Deutsche Bank focusing on the financing of large-scale international projects in infrastructure and the commodity sector as well as US-based cogeneration power plants.

His career at DBAG started in 1989 as an Investment Manager for 14 portfolio companies in a variety of sectors and he invested in the first privatisations after Germany's reunification. From 1992, as head of Central Investment Controlling, he organised and installed the risk monitoring processes for more than 120 portfolio companies spread over ten DBAG branch offices. In this position, he was also a member of the DBAG Investment Committee. From 1995, in his role as CFO, he additionally took on responsibility for Finance and Accounting. Along with DBAG's independence from Deutsche Bank which commenced in 1997, he negotiated the entry of new handpicked anchor shareholders and investors. Linked to that was the establishment of capital market communications and the first corporate actions. To accelerate DBAG's independence, he organised the placement of DBAG's first closed-end buyout fund for international investors. Subsequent to the successful fund-raising for DBAG Fund V and DBAG Expansion Capital Fund, he retired from his role as CFO and has since focused on the development of the expansion capital business. In that capacity, he is currently monitoring and supporting the portfolio companies in the telecommunications, information technology and media sectors.

Gustav Egger

Managing Director

+49 69 95787-300
gustav.egger@dbag.de