Livonia buys minority in CGates

Livonia led the investor consortium, which acquired a 35% stake in the business from the parent company Starman, unquote" understands. According to a source close to the situation, the GP acquired 51% of the consortium's minority stake.

The management team will use the fresh capital to boost the company's product development. Furthermore, the company aims to drive consolidation across the fragmented Lithuanian communication market, the source added.

The deal is the fourth for the GP's Baltic mid-cap-focused Livonia Partners Fund I, following the acquisition of sauna manufacturer Ha Serv, home and gardening retail brand Hortes and IT network and security firm Santa Monica Networks.

Currently the GP manages €73m Livonia Partners Fund I and the €10m Livonia Partners EIF Co-Investment fund. According to the source, half of the total commitments raised have now been deployed.

Company
Established in 1991, CGates is a cable network operator, focusing on digital television, fixed telephony and fibre-optic broadband.

The Vilnius-based business employs 300 people and posted €19.5m in revenues in 2016.

People
Livonia Partners – Mindaugas Utkevičius (founding partner); Rain Lõhmus (partner).
CGates – Petras Kirdeika (CEO).

Advisers
Equity – EY (financial due diligence, tax); Cobalt Partners (legal).

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• Topics
• Expansion
• Industrials
• CEE
• Lithuania
• Livonia Partners