ECI reaps 3x on XLN exit

The exit represents a 3x return for ECI's ninth fund. The investment in XLN was the vehicle's maiden deal, with the GP acquiring the company in an SBO from Palatine Private Equity – then known as Zeus Private Equity – in September 2010.

Under ECI's tenure, the company has expanded its management team and undertaken an acquisitive growth strategy, bolting on Card Processing Solutions and Shine Telecom.

Following the transaction, XLN's chairman John Donaldson will be replaced by former Travis Perkins CEO Frank McKay.

Debt
GSO provided financing to support the deal.

Previous funding
Palatine acquired a majority stake in XLN for £6.6m in a 2008 management buyout. The GP then provided the company with acquisition finance the following year. Under Palatine, XLN made a series of acquisitions including OneBill Telecom in 2009.

In 2010, ECI acquired the company in a deal representing a 4.5x return on investment for Palatine. The transaction's value was undisclosed, though it was reported XLN had an enterprise value of £80m at the time.

Company
Founded in 2002 and headquartered in London, XLN provides card processing and telecommunications services, with a particular focus on small businesses.

People
Tom Wrenn is a partner at ECI and head of its telecommunications, media and technology team. Christian Nellemann is founder and CEO of XLN.

Advisers
Acquirer – Catalyst Corporate Finance (Corporate finance).

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Exits
• UK / Ireland
• Technology
• United Kingdom
• Blackstone Group
• ECI Partners