DEEN
Internationalisation and product innovations
€67.7mn
Equity investment
€40mn
Revenue 2017 (EXP.)
110
Employees 2017

KEY FACTS AT A GLANCE

  • Growth through further internationalisation
  • Acquisition in Spain enhances European market coverage
  • Measures to achieve operational improvements starting to bear fruit; revenues expected to exceed prior-year value

TELIO MANAGEMENT GMBH

Investment by
DBAG FUND VI

€67.7mn

DBAG'S INTEREST

€12.9mn

MANAGEMENT BUYOUT
Shareholders:
DBAG FUND VI

78.5%

EQUITY SHARE BELONGING TO DBAG

14.9%

other shareholders

21.5%

First invested

APRIL 2016

REVENUES in €mn

 

25

 

2015

 

38

 

2016 (PRO FORMA)

 

40

 

2017 (EXP.)

As of 30 September 2017

80

PERCENT

of Telio's revenues are now generated outside of Germany

The company has many similarities with the two other telecommunication companies in our portfolio, and we intend to apply the experience gained there to our new investment.

TOM ALZIN
MANAGING DIRECTOR

PROFILE

Telio develops, installs and operates communications and media systems for correctional facilities. It installs telephones and related systems, allowing inmates to make monitored calls from communal areas or directly from their cells. Telio’s product range also includes comprehensive multimedia systems, which comprise, for example, TVs, DVD players, radios and PCs with restricted internet access. In addition to the corresponding installations (cables and end devices), Telio also offers software that monitors telephone calls and handles the related billing. The software relieves prison officers of some of their responsibilities, thereby simplifying everyday life at correctional facilities.

POTENTIAL FOR DEVELOPMENT

The business is driven by efforts to ensure easier reintegration of the prisoners into society after their release. It has been shown that regular contact with family and friends contributes significantly to this goal. Another promising application for Telio’s products is screen-based learning in preparation for life after prison. The company has good growth prospects through increasing its international reach within Europe and beyond, developing new products and broadening its customer base. There is additional potential for value growth from adapting the structures of this fast-growing company to reflect its new size. This includes strengthening the second level of management at Telio.

FINANCIAL YEAR 2017

Telio expects revenues to exceed the prior-year level and the budget in the financial year 2017. The company is continuing with its inter national expansion: the new business in the Czech Republic, for example, has already shown very positive development in the first year after the company won the tender. The acquisition of the inmate telephony business line of the Spanish telecommunications company Telefónica allowed the company to further expand its market-leading position in Europe. The expansion of the business and investments in new products are reflected in the earnings for the financial year 2017, which are expected to be on par with the previous year.

OUTLOOK AND OBJECTIVES

The measures launched by Telio to optimise its operational processes have already had a positive impact in 2017. Further potential for operational improvement is to be exploited  over the next few months. Telio plans to achieve further organic growth, which is why it is taking part in tenders worldwide. The company also plans to acquire further companies in the market and is constantly looking into possible acquisition targets.

Responsible team member

Tom Alzin
Tom Alzin

Managing Director

Tom Alzin
Name:
Tom Alzin
Investment focus:
Management buyouts
Telephone:
+49 69 95787-219
E-Mail:

Tom Alzin

Managing Director

Tom Alzin joined Deutsche Beteiligungs AG in 2004 and became a Managing Director in 2011.

He studied Business Administration at HEC Lausanne and at the London School of Economics.

Tom Alzin has more than twelve years of experience in private equity. During that time, he gained a wealth of knowledge, particularly in the mechanical and plant engineering and in the services sector. Tom Alzin was involved in numerous acquisitions and realisations and also in the IPO of Homag. The realisations of Homag and Spheros, subsequent to their very successful development, are two of his most successful transactions. Tom Alzin also led the investment process in FDG, Pfaudler, Schülerhilfe, Telio, Polytech and duagon and sits on the advisory councils of the companies, which are still part of the DBAG portfolio.

Current portfolio companies

Duagon Holding AG Telio Management GmbH Polytech Health & Aesthetics GmbH Pfaudler International S.à r.l.

Former portfolio companies

Tom Alzin

Managing Director

+49 69 95787-219
tom.alzin@dbag.de