DEEN
Internationalisation and product innovations
€69.4mn
Equity investment
€38mn
Revenue 2016
110
Employees 2016

KEY FACTS AT A GLANCE

  • Revenues and earnings up on previous year
  • Growth through acquisitions of other companies, among others

TELIO MANAGEMENT GMBH

Investment by
DBAG FUND VI

€69.4mn

thereof DBAG

€13.2mn

MANAGEMENT-BUY-OUT
Shareholders:
DBAG FUND VI

79.7%

thereof DBAG

15.1%

other shareholders

20.3%

First invested

APRIL 2016

REVENUES in €mn

 

19

 

2014

 

26

 

2015

 

38

 

2016 (PRO FORMA)

As of 30 June 2017

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

COMMUNICATIONS AND MEDIASYSTEMS FOR CORRECTIONAL FACILITIES

Telio develops, installs and operates communications and media systems in prisons. It installs telephones and related systems allowing inmates to make controlled calls from communal areas or directly from their cells. Telio’s product range also includes multimedia products that integrate other modes of communication, such as TVs, DVDs, radios and PCs with restricted Internet access. The company’s success is based on investments in corresponding installations (cables, end devices) and software that controls telephone calls and handles the related billing. The software relieves law enforcement officers of some of their responsibilities, thereby simplifying everyday life at correctional facilities.

POTENTIAL FOR DEVELOPMENT

The business is driven by efforts to support prisoners’ rehabilitation 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. We see additional upside potential from adapting the corporate governance of this fast-growing company to its new size. This includes strengthening the second level of management at Telio.

2016 FINANCIAL YEAR

Telio performed well in the first year after being incorporated into DBAG’s portfolio. For example, it signed up the first prison in Morocco, and in a German prison, it installed a device that enables prisoners to have interference- free and low-cost television reception. In addition, Telio secured a contract for the Czech Republic in the last quarter of the year. Installing telephones and the corresponding systems in new markets requires initial upfront investments from Telio. However, the company’s revenues and earnings will be up on the previous year’s figures while margins remain steady.

OUTLOOK AND OBJECTIVES

Telio intends to grow further and aims to increase its revenues and earnings in 2017. By preparing bids in three European countries, the company has created a basis for organic growth. In addition, it intends to acquire other companies in its market.

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 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