Platinum Equity Signs Definitive Agreement to Sell NextiraOne Europe to ABN AMRO Capital
LOS ANGELES and PARIS--(BUSINESS WIRE)--May 10, 2006--
Under Platinum's Guidance, the Former Alcatel Business Unit Made a Successful Transition to Standalone Company, and Became One of Europe's Leading Communications Service Providers
Platinum Equity announced today that it has agreed to sell portfolio company NextiraOne Europe to ABN AMRO Capital France, the French private equity business of ABN AMRO Capital. The transaction, subject to normal closing conditions and regulatory approval, is expected to be completed in several weeks.
"NextiraOne Europe has been a landmark investment for our firm," said Tom Gores, Platinum Equity's chairman and CEO. "It was our first major acquisition in Europe, and helped fuel our European growth in a number of important ways. Since acquiring the company from Alcatel we have made a significant number of operational improvements, and we feel confident that a platform has been established which will facilitate ABN AMRO's efforts to continue to take the company to new heights."
Platinum acquired the enterprise distribution and services business from Alcatel in 2002. The company provided voice and data telecommunications services to businesses throughout Europe. At the time of the acquisition, the business had a base of more than EUR 1 billion in annual revenue. But it faced significant operational challenges in establishing itself as an independent, standalone company outside of Alcatel and transitioning to a full-service solutions provider.
During the carve-out and transition phase, Platinum sent in a team of more than 20 operational executives who launched a series of initiatives designed to stabilize the company, ensure there was no disruption in customer service, and develop a strategic plan for the future.
Those initiatives included appointment of a management team led by CEO Bruno D'Avanzo; re-launching the company under the name NextiraOne Europe with headquarters in Paris; developing new supplier relationships and re-training staff to expand the company's service offerings; and executing add-on acquisitions in the United Kingdom, the Netherlands and the Czech Republic that further strengthened the company.
"We broadened the focus of NextiraOne and shifted the business from a predominantly voice solutions provider to a fully enabled provider of integrated IP communications and managed services in Europe," said Brian Wall, Platinum Equity's managing director for Europe. "We expanded the delivery capability of the company and enhanced its geographic presence through acquisitions in the Czech Republic, Benelux and UK. We're now handing off NextiraOne Europe to ABN AMRO Capital to take the company to the next level."
About Platinum Equity
Platinum Equity (www.platinumequity.com) is a global M&A&O(R) firm specializing in the merger, acquisition and operation of companies that provide services and solutions to customers in a broad range of business markets, including information technology, telecommunications, logistics, manufacturing, and entertainment distribution. Since its founding in 1995 by entrepreneur Tom Gores, Platinum Equity has acquired more than 60 businesses with more than $12 billion in aggregate revenue at time of acquisition.
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