GROWTH THROUGH EXPANSION OF FIBER OPTIC NETWORKS
€9.4MN
Equity investment
€98MN
Revenues 2019 (pro forma, exp.)
240
Employees 2019

KEY FACTS AT A GLANCE

  • Substantial revenue growth; availability of qualified employees as a limiting factor
  • Four add-on acquisitions during two years of holding period
  • Strong growth path of prior years expected to continue in upcoming years

vitronet GmbH

INVESTMENT BY
DBAG ECF

€9.4MN

DBAG’S INTEREST

€4.5MN

MANAGEMENT BUYOUT
SHAREHOLDERS:
DBAG ECF

86.8%

EQUITY SHARE BELONGING TO DBAG

41.3%

OTHER SHAREHOLDERS

13.2%

FIRST INVESTED

JUNE 2017

REVENUES IN €MN

 

42

 

2017 (pro forma)

 

64

 

2018 (pro forma)

 

98

 

2019 (pro forma, exp.)

As of 31 December 2019

4

add-on acquisitions completed during holding period

vitronet is a well-known company that benefits from its excellent reputation as a telecommunications service provider. The company is well positioned to participate  in the expansion of the digital infrastructure in the long run.

RAGNAR GEERDTS
MANAGING DIRECTOR

PROFILE

vitronet GmbH (vitronet) is a one-stop shop for all services associated with the roll-out and setting up of broadband networks. This includes planning & documentation, build-out as well as management and maintenance of fibre-optic networks via seven regional offices in Germany. After several add-on acquisitions, vitronet’s service portfolio also comprises own underground construction capabilities and a dark fibre leasing business. vitronet primarily services utility companies and municipalities.

POTENTIALFOR DEVELOPMENT

vitronet is expected to continue reporting double-digit growth in the coming years. The main opportunities will arise from the considerable demand for high-performance internet connections – demand which is expected to increase even further in the future. Network expansion is one of the state’s preferred infrastructure projects, and considerable funds have been earmarked to support the roll-out. A further market driver is the upgrading of mobile communications networks (LTE to be followed by 5G), which require new fibre optic networks as well. With several investments behind it, DBAG has accumulated considerable experience in the telecommunications sector. Over the next few years, we will support vitronet’s management team to adapt the company’s internal processes and structures to continue participating in the substantial growth of the market.

FINANCIAL YEAR 2019

Following two add-ons in the first year of our holding period, vitronet was able to close two more add-on acquisitions in 2019. With Sandmann GmbH, vitronet broadened not only its geographical footprint but also its product and service offering to the roll-out and maintenance of powerlines and gas pipes. Heinz Lütkemeier GmbH & Co. KG expands the Group’s value chain with copper installation services and further diversifies its customer base. Both companies significantly increased vitronet’s capacities and hence open up new opportunities, as the company’s growth is being limited by scarce personnel resources in the market.

OUTLOOK AND OBJECTIVES

Given the positive market environment, the consistently strong order intake as well as the increasing contribution of vitronet’s add-on acquisitions, management expects to continue with double-digit growth rates also in 2020. Furthermore, vitronet is consistently examining new companies for acquisitions in order to further expand its capacities and service offering.

Responsible team member

Ragnar Geerdts
Ragnar Geerdts

Managing Director

Ragnar Geerdts
Name:
Ragnar Geerdts
Telephone:
+49 69 95787-172
E-Mail:

Ragnar Geerdts

Managing Director

Ragnar Geerdts joined Deutsche Beteiligungs AG in 2012 and became a Managing Director in 2017.

Ragnar Geerdts has over 13 years of experience in private equity and mergers and acquisitions. He has extensive knowledge of the automotive supplier and telecommunications industries and in mechanical and plant engineering. He was involved in numerous investments and disinvestments, including DNS:NET, Frimo, Formel D, inexio, mageba, Oechsler and Unser Heimatbäcker. Ragnar Geerdts also led the investment process in vitronet, netzkontor nord, von Poll Immobilien, BTV Multimedia, FLS and DING Group and sits on the advisory councils of these companies. Before joining Deutsche Beteiligungs AG he worked in the area of M&A at Bayer AG and at Deutsche Post AG.

Ragnar Geerdts holds a degree in Business Administration from Freie Universität Berlin, and also studied at the Beijing Foreign Studies University.

Current portfolio companies

Former portfolio companies

Ragnar Geerdts

Managing Director

+49 69 95787-172
ragnar.geerdts(at)dbag.de