Secondary Buyout • Communications

Warburg Pincus and ICG Acquire MACH

On June 13, 2005, private equity firm Warburg Pincus and mezzanine finance firm ICG acquired communications company MACH from Advent International

Acquisition Context
  • This is Warburg Pincus’ 6th and ICG’s 2nd transaction in the Communications sector.
  • This is Warburg Pincus’ 1st and ICG’s 2nd transaction in Luxembourg.
Investment Fate
  • MACH was sold to a strategic buyer in 2012 for 550M EUR.

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M&A Deal Summary

Date June 13, 2005
Target MACH
Sector Communications
Buyer(s) Warburg Pincus
ICG
Sellers(s) Advent International
Deal Type Secondary Buyout

Target Company

MACH

Contern, Luxembourg
MACH is a hub-based mobile communications exchange. MACH solutions shorten providers' time to market for new mobile applications, optimize service delivery to the mobile end-user, and accelerate the settlement of inter-operator financial liabilities. MACH enables the efficient flow of mobile traffic, of service validation, delivery and billing information, and of settlement transactions.
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Buyers Overview 2

Buyer

Warburg Pincus

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1966
PE ASSETS 83.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Warburg Pincus is a mega-sized, global private equity firm focused on investment opportunities across North America, Asia, and Europe. Warburg will consider investing at various company stages, from early-stage opportunities to distressed situations. Warburg Pincus is organized by industry groups. Verticals include financial services, healthcare, technology, media & telecommunications, energy, consumer & industrial, and real estate. Within financial services, Warburg will consider asset/wealth managers, banks, exchanges, financial technology, insurance, transaction processing, private banking, and specialty/consumer finance. Within healthcare, specific areas of interest include medical devices, healthcare services, and biotech/pharmaceuticals. Within technology/media/communications, Warburg targets software, media/internet/information, financial technology, telecom, business services, and systems/semiconductors. Within energy, specific areas of interest include oil/gas exploration, power generation/transmission, and alternative energy. Warburg Pincus raised its first fund in 1966 and is based in New York City.


Deal Context for Buyer #
Overall 81 of 493
Sector: Communications 6 of 19
Type: Secondary Buyout 7 of 70
Country: Luxembourg 1 of 1
Year: 2005 11 of 17
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-05-02 Neiman Marcus

Dallas, Texas, United States

Neiman Marcus is a specialty retailer with online and offline operations. The Company's retail stores segment consists primarily of Neiman Marcus, Bergdorf Goodman and Last Call stores. The Online segment conducts both catalog and online operations under the Neiman Marcus, Bergdorf Goodman and Horchow brand names. Neiman Marcus was originally established in 1907 and is headquartered Dallas, Texas.

Buy $5.1B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-06-23 New Breed Logistics

High Point, North Carolina, United States

New Breed Logistics is a privately held, third-party logistics provider that helps companies to design and operate efficient supply chains. We manage millions of square feet of warehouse space across more than 50 distribution centers and employ more than 7,500 people. Services range from distribution center operations and transportation management to highly sophisticated, technology-enabled solutions involving product assembly, reverse logistics and repair, manufacturing support, and supply chain consulting.

Buy -
Buyer

ICG

London, United Kingdom

Investor Investor Investor Investor Investor


Category Mezzanine Finance Firm
Founded 1989
PE ASSETS 33.4B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Intermediate Capital Group (ICG) is a global mezzanine finance firm. IGC looks to provide junior capital to support a wide range of transactions, including buyouts, debt restructurings, and development financing. The Firm generally invests alongside financial sponsors and management teams in transactions valued from €250 million to €1 billion. ICG was formed in 1989 and is headquartered in London.


Deal Context for Buyer #
Overall 135 of 294
Sector: Communications 2 of 7
Type: Secondary Buyout 25 of 115
Country: Luxembourg 2 of 4
Year: 2005 14 of 28
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-06-01 Dometic Group

Solna, Sweden

Dometic Group is a provider of value-added products to the recreational vehicle and pleasure boat industries. Dometic Group was founded in 1922 and is based in Solna, Sweden.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-06-14 Tunstall

Whitley Bridge, United Kingdom

Tunstall is a provider of telecare/telehealth solutions. Tunstall works with social care providers, healthcare services, housing and retirement living providers and charities in 19 countries, improving the lives of more than five million people, including those living with dementia, learning disabilities, physical disabilities and long-term health conditions. Tunstall was founded in 1957 and is based in Whitley Bridge, United Kingdom.

Buy £225M

Seller Profile 1

SELLER

Advent International

Boston, Massachusetts, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1984
PE ASSETS 91.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Advent is a global private equity firm that targets investments in North America, Europe, Asia, and Latin America. Advent's emerging market efforts are concentrated in Central Europe and Latin America. Advent seeks transactions valued between $50 million and $5 billion and can commit up to $2 billion of equity capital per investment. Broad areas of interest include business & financial services, retail & consumer, technology, media, & telecoms, healthcare & life sciences, and industrial. Prospective transaction types include buyouts, growth capital financings, take privates, and recapitalizations. Advent was formed in 1984 and is based in Boston, Massachusetts.


Deal Context for Seller #
Overall 61 of 236
Sector: Communications 12 of 16
Type: Secondary Buyout 10 of 61
Country: Luxembourg 1 of 1
Year: 2005 6 of 11
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-06-07 Boart Longyear

Salt Lake City, Utah, United States

Boart Longyear is a provider of drilling services, orebody-knowledge technology, and innovative, safe and productivity-driven drilling equipment. The Company’s primary focus is on mining and exploration activities spanning commodities including copper, gold, nickel, zinc, uranium, and other minerals. Boart Longyear was founded in 1890 and is based in Salt Lake City, Utah.

Buy $545M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2005-07-01 Synventive Molding Solutions

Peabody, Massachusetts, United States

Synventive Molding Solutions, Inc. is a solutions provider to the injection molding industry. Synventive is a designers, manufacturers and suppliers of hot runner systems and related components to the automotive, electronics, healthcare, and consumer packaging industries. Hot runner systems channel molten plastic from injection molding machines into molds. These systems are used in the molding of a variety of plastic products ranging from small medical devices to large automobile parts.

Buy -