IK Investment Partners to acquire Netel from Axcel

IK Investment Partners (“IK”) is pleased to announce that the IK VII Fund together with management has reached an agreement to acquire NeTel Group AB (“Netel” or “the Company”), a leading Nordic infranet service provider to telecom operators, utilities and municipalities, from Axcel. Financial terms of the transaction are not disclosed, and completion of the transaction is subject to legal and regulatory approvals.

Founded in 2000 as a subsidiary of PEAB, a Swedish construction and civil engineering company, Netel has grown to become a leading Nordic service provider for communication and electrical networks, offering services ranging from planning and project management to design and maintenance. With its turnkey solutions, project management expertise and strong focus on innovation, the Company acts as a collaborative partner to telecom operators, network owners, property owners, construction companies, housing companies and cooperative housing associations. Headquartered in Stockholm, Netel has around 340 employees and generated pro forma revenues of approximately MSEK 1,500 in 2015.

“Over the last few years, Netel as a company has expanded its geographical reach and service offering. Today we have a strong market position in the Nordic region and a diversified customer base, whilst maintaining our entrepreneurial culture. As we now aim to develop into the Northern European market, IK is an ideal partner with a strong track record of internationalising companies and accelerating growth,” says Erik Salling, Group CEO of Netel Group.

“Netel has outperformed its market in recent years, and we see great opportunities for further growth in Northern Europe, led by the Company’s highly experienced management team, and founded in Netel’s strong and flexible operating model. By leveraging our expertise in developing and growing businesses, our past experiences with service companies and our vast network, we look forward to supporting Netel over the coming years,” says Alireza Etemad, Partner at IK Investment Partners and advisor to the IK VII Fund.

This acquisition reasserts IK’s expertise in the business services segment, developed through successful previous investments across Europe, for example: Ramudden (Sweden, 2014), Trigo Group (France, 2011), Idex (France, 2004) and Eltel Networks (Sweden, 2001).

PwC Corporate Finance acted as financial advisor and Mannheimer Swartling as legal advisor to IK Investment Partners.

For further questions:

Netel
Erik Salling, Group CEO
Phone: +46 733 37 50 00
erik.salling@netel.se

IK Investment Partners
Alireza Etemad, Partner
Phone: +46 8 678 95 00

Mikaela Hedborg, Communications & ESG Manager
Phone: +44 77 87 573 566
mikaela.hedborg@ikinvest.com