Secondary Buyout • Communications

The Carlyle Group, Providence Equity Partners and Ardian Acquire Com Hem AB

On December 5, 2005, private equity firms The Carlyle Group, Providence Equity Partners and Ardian acquired communications company Com Hem AB from EQT for 1.2B EUR

Acquisition Context
  • This is The Carlyle Group’s 18th, Providence Equity Partners’ 12th and Ardian’s 2nd transaction in the Communications sector.
  • This is The Carlyle Group’s 49th, Providence Equity Partners’ 14th and Ardian’s 31st largest (disclosed) transaction.
  • This is The Carlyle Group’s 3rd, Providence Equity Partners’ 1st and Ardian’s 1st transaction in Sweden.
Investment Fate
  • Com Hem AB was sold to a consortium of financial buyers in 2011 for 2.6B USD.
  • Com Hem AB was sold to a publicly-traded strategic buyer in 2017 for 3.7B SEK.

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M&A Deal Summary

Date December 5, 2005
Target Com Hem AB
Sector Communications
Buyer(s) The Carlyle Group
Providence Equity Partners
Ardian
Sellers(s) EQT
Deal Type Secondary Buyout
Deal Value 1.2B EUR

Target Company

Com Hem AB

Stockholm, Sweden
Com Hem offers broadband, TV, play and telephony services to Swedish households and companies. The company plays an important role in Sweden’s ongoing digitalisation push, with its powerful and future-proofed broadband network that covers half of the country’s households, reaching approximately 1.5 million customers.
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Buyers Overview 3

Buyer

The Carlyle Group

Washington, District of Columbia, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1987
PE ASSETS 435.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION
Carlyle's corporate headquarters on Pennsylvania Ave. in Washington, DC.
Carlyle's corporate headquarters on Pennsylvania Ave. in Washington, DC.

The Carlyle Group is a global investment firm that pursues private equity, credit, and real estate investments worldwide. Carlyle's private equity practice practice pursues buyouts, strategic minority equity investments, equity private placements, consolidations and buildups, and growth capital financings. With offices in 19 countries, Carlyle can easily target opportunities throughout North America, Europe, Asia, Australia, the Middle East/North Africa and Latin America. Broad sectors of interest include aerospace, defense, automotive and transportation, consumer, retail, energy and power, financial services, healthcare, industrial, infrastructure, technology services, business services, telecommunications and media. The Carlyle Group was formed in 1987 and is based in Washington DC.


Deal Context for Buyer #
Overall 206 of 750
Sector: Communications 18 of 26
Type: Secondary Buyout 10 of 130
Country: Sweden 3 of 4
Year: 2005 29 of 32
Size (of disclosed) 49 of 137
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-12-01 Sight Resource

Cincinnati, Ohio, United States

Sight Resource Corporation provided a full range of primary eye care products and services.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-12-08 BNX Systems

Vienna, Virginia, United States

BNX Systems Corporation provides user authentication management software for enterprise and Internet security functions, including smart card, biometrics, and token-based applications.

Sell -
Buyer

Providence Equity Partners

Providence, Rhode Island, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1989
PE ASSETS 38.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Providence Equity Partners is a specialist private equity firm that targets investments in media, entertainment, communications, and information companies. Specifically, Providence seeks investments in wireless and wireline telephony, cable television content and distribution, music, film, publishing, radio and television broadcasting, and other media and communications sectors. Providence Equity looks to commit $150 million to $800 million of equity capital in transactions ranging from growth financings and recapitalizations, to buyouts and take-privates. Providence Equity Partners was formed in 1989 and has offices in Providence, Rhode Island; New York, New York; Los Angeles, California; London, United Kingdom; Hong Kong, China; and New Delhi, India.


Deal Context for Buyer #
Overall 31 of 137
Sector: Communications 12 of 20
Type: Secondary Buyout 2 of 40
Country: Sweden 1 of 2
Year: 2005 7 of 7
Size (of disclosed) 14 of 34
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-11-04 Grupo Corporativo ONO S.A.

Madrid, Spain

Grupo Corporativo ONO S.A. is a broadband service provider. It offers direct access telephony, pay television and internet access services to the residential market where, ONO offers advanced voice, data and value-added services across its own high capacity local access and national backbone networks.

Buy €2.3B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-01-01 ZP Better Together

Austin, Texas, United States

ZP Better Together is a nationally recognized video relay service provider that enables Deaf and Hard-of-Hearing individuals to communicate with hearing people worldwide. The company provides videophone hardware, software, and accessories designed to allow for a real-time video connection with certified ASL interpreters who relay conversations between parties. ZP Better Together was founded in 2006 and is based in Austin, Texas.

Buy -
Buyer

Ardian

Paris, France

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1996
PE ASSETS 127.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Ardian is a mega-sized diversified investment group focused on opportunities worldwide. Ardian invests across and manages funds focused on small and mid-sized buyouts, growth capital financings, mezzanine, infrastructure, real estate, and co-investment opportunities. Ardian's small-buyouts group targets controlling interests in French, German, and Italian businesses valued up to €100 million. It's mid-sized buyout group seeks businesses valued up €1.5 billion and does not have any geographic limitations. The Infrastructure team looks for European opportunities and can commit up to €1 billion per transaction. The Mezzanine group supports junior capital commitments of €5 to €80 million. In addition to direct investing, Ardian also manages various private equity fund-of-funds. Ardian was founded in 1996 and is based in Paris.


Deal Context for Buyer #
Overall 37 of 465
Sector: Communications 2 of 18
Type: Secondary Buyout 10 of 155
Country: Sweden 1 of 7
Year: 2005 19 of 19
Size (of disclosed) 31 of 68
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-12-01 Seloger.Com SA

Paris, United States

Seloger.Com SA is a web-based property for listing houses. Its sites include seloger.com and immostreet.com.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-12-15 Souriau-Sunbank Connection Technologies

Versailles, Pennsylvania, France

Souriau SAS is a provider in connector solutions for industrial, military aeronautics and aerospace applications. The company makes a wide range of interconnection systems for severe environments (high pressure, extreme temperature, marine environments, exposure to electromagnetic or nuclear radiation, etc.)

Sell €483M

Seller Profile 1

SELLER

EQT

Stockholm, Sweden

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1994
PE ASSETS 242.0B EUR
Size Mega
Type Sector Agnostic
DESCRIPTION

EQT is a global private equity group that purses a variety of investment strategies around the world. EQT is divided into several investment disciplines, including private capital, real assets, credit, and venture. The Firm's private capital group targets large, market-leading enterprises (investment size of €125 to €1.5 billion) across Europe and the US, as well as mid-market, growth companies (investment size of €40 to €125 million) across the US, Europe, China, and Southeast Asia. The Firm's real assets group seeks to identify control or co-control equity investments (investment size of €500 to €1 billion) in medium-sized infrastructure companies that provide an essential service to society, are recession resilient, and have secure cash flows. EQT's credit group provides flexible, long-term debt capital solutions to medium-sized European businesses, across a wide range of sectors. EQT was established in 1994 and is headquartered in Stockholm, Sweden.


Deal Context for Seller #
Overall 17 of 194
Sector: Communications 1 of 8
Type: Secondary Buyout 7 of 61
Country: Sweden 9 of 34
Year: 2005 6 of 7
Size (of disclosed) 16 of 44
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-11-07 ADR-Haanpaa

Helsinki, Finland

ADR-Haanpaa is a road transportation and logistics services company for liquid chemicals in the Nordic region. ADR-Haanpaa is based in Helsinki, Finland.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-12-13 Bewator Holding AB

Solna, Sweden

Bewator, a leading European supplier of products and systems for access control, in 2002. Bewator was an established player on the European security market with a broad product portfolio.

Sell -