DEEN
€15.5MN
Equity investment
€36MN
Revenue 2017 (EXP.)
100
Employees 2017

KEY FACTS AT A GLANCE

  • Substantial revenue growth expected; availability of qualified employees as a limiting factor
  • Expansion of capacities thanks to company acquisition shortly after the start of investment
  • Revenues and earnings in line with expectations

vitronet Projekte GmbH

INVESTMENT BY
DBAG ECF

€15.0MN

DBAG’S INTEREST

€7.4MN

MANAGEMENT BUYOUT
SHAREHOLDER: ECF

92.2%

EQUITY SHARE BELONGING TO DBAG

43.8%

OTHER SHAREHOLDERS

7.8%

START OF INVESTMENT

JUNE 2017

REVENUES IN €MN

 

12

 

2015

 

18

 

2016

 

36

 

2017 (EXP.)

As of 30 September 2017

<2

percent

of all fixed broadband connections in Germany used fibre-optic cables by the end of 2016 according to the OECD.

Digitalisation is opening up a whole host of new opportunities for the economy and society. In order to be able to grasp these opportunities, however, a high-performance fibre-optic infrastructure with nationwide coverage is an absolute must.

DEAL CAPTAIN’S OPINION

Digitalisation is the fundamental technological trend of our times. It is giving rise to new business models and forms of communication, making products more customised, improving medical diagnoses and treatment, enhancing traffic safety, reducing energy consumption and making our day­to­day lives more convenient on the whole. There is virtually no area of our lives that has not been affected by digital transformation in some way or another.

But without a high­performance digital infrastructure across the country, it will be impossible to exploit the full potential offered by digital transformation. Compared with other European countries, Germany is lagging far behind when it comes to fibre­optic connections. This is why, in addition to the market­driven expansion of broadband in Germany, various subsidy programmes have been launched to accelerate nationwide expansion of the broadband network. In light of the limited capacities available, it will take ten to 15 years to establish the necessary infrastructure.

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 technical upgrades to existing networks. The company’s main customers include utility companies and municipalities. Around 50 employees are based at the company’s head office in Essen, with a further 50 working at five other locations in Germany.

POTENTIALFOR DEVELOPMENT

vitronet is a fast-growing company that is also expected to continue reporting double-digit revenue 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. Further market drivers include the upgrading of the mobile networks (LTE will be followed by 5G) and of the networks of cable providers. vitronet can offer all of the services required to develop larger fibre-optic networks from a single source.

With several investments behind it, DBAG has broad experience in the telecommunications sector. Over the next few years, it 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 2017

Only a few months after the start of the invest ment, DBAG and DBAG ECF financed the acquisition of two companies by vitronet. Dankers Bohrtechnik GmbH and Dankers Projektierung GmbH will provide vitronet with additional capacities, will expand its product range to include civil engineering for fibre-optic networks and will broaden the company’s 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. Dankers will increase vitronet’s revenues by around one-third to around 50 million euros (2017). All in all, revenues and earnings are in line with expectations. They are likely to exceed the prior-year values considerably.

OUTLOOK AND OBJECTIVES

In light of the solid market environment, vitronet’s management team once again projects higher revenues and earnings in 2018.

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.

Responsible team member

RAGNAR GEERDTS, MANAGING DIRECTOR

Ragnar Geerdts can look back on more than ten years of private equity and M&A experience. He has extensive knowledge of the automotive supply and telecommunications industries, as well as the mechanical and plant engineering sector. He has been involved in a large number of equity investments and divestments, for example DNS:NET, Frimo, Formel D, inexio and Oechsler. vitronet is the first investment to be added to the portfolio under his direction. Before joining Deutsche Beteiligungs AG in 2012, he worked in M&A at Bayer AG and Deutsche Post AG.

Ragnar Geerdts
Ragnar Geerdts

Managing Director

Ragnar Geerdts
Name:
Ragnar Geerdts
Investment focus:
Expansion capital investments
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. Before joining Deutsche Beteiligungs AG he worked in the area of M&A at Bayer AG and at Deutsche Post AG.

Ragnar Geerdts studied business administration at the University of Berlin and Chinese at the Beijing Foreign Studies University.

Current portfolio companies

vitronet Projekte GmbH

Former portfolio companies

Ragnar Geerdts

Managing Director

+49 69 95787-172
ragnar.geerdts@dbag.de