€9.0MN
Equity investment
€59MN
Revenues 2018
230
Employees 2018

KEY FACTS AT A GLANCE

  • Substantial revenue growth expected; availability of qualified employees as a limiting factor
  • Second company acquisition just one year after the start of investment
  • Revenues expected to exceed the previous year’s level despite project postponements

vitronet Projekte GmbH

INVESTMENT BY
DBAG ECF

€9.0MN

DBAG’S INTEREST

€4.3MN

MANAGEMENT BUYOUT
SHAREHOLDER: ECF

86.8%

EQUITY SHARE BELONGING TO DBAG

41.3%

OTHER SHAREHOLDERS

13.2%

FIRST INVESTED

JUNE 2017

REVENUES IN €MN

 

32 

 

2016

 

42

 

2017

 

59

 

2018

As of 31 December 2018

9

percent

average annual growth expected for the fibre-optic market until 2025

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 Projekte GmbH is a one-stop shop for all services associated with the setting up of broadband networks. This includes not only planning and, further down the line, providing services, but also the construction of the networks using subcontractors. The company focuses on new fibre-optic networks and the technical upgrading of existing networks. vitronet’s main customers here include utility companies and municipalities. Around 200 employees are based at the company’s head office in Essen and working at five other locations in Germany.

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 make it happen. A further market driver is the upgrading of mobile communications networks (LTE to be followed by 5G). With several investments behind it, DBAG has accumulated considerable experience in the telecommunications sector. Over the next few years, we will be helping vitronet’s management team to adapt the company’s internal processes and structures to make it fit for the substantial growth that the market offers.

FINANCIAL YEAR 2018

In May 2018 – just one year after the start of DBAG’s investment – vitronet completed its second acquisition. vitronet has further improved its market position with the acquisition of Enetty Holding GmbH (Enetty). Enetty bundles fibre-optic paths from various network providers to create a single direct connection that can be sublet to customers on the basis of long-term contracts. With the acquisition of Dankers Bohrtechnik GmbH and Dankers Projektierung GmbH in the 2017 financial year, vitronet expanded the value chain to include civil engineering for fibre-optic networks, increased its capacities and broadened its customer base. The capacity expansion, in particular, will open up new opportunities, as the company’s growth is being hindered by a short supply of personnel resources. In the 2018 financial year, vitronet itself hired a total of 40 new employees. Revenues and earnings remained below budget due to projects being postponed into 2019 due to weather-related issues.

OUTLOOK AND OBJECTIVES

Given the positive market environment and consistently strong order intake, higher revenues and earnings are expected for 2019. The vitronet management team is also looking into acquiring further companies in order to expand its capacities.

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.

He has over ten years of experience in private equity and mergers and acquisitions. Ragnar Geerdts 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 and FLS 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.

Ragnar Geerdts

Managing Director

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