Cinven acquires Pronet Güvenlik from Turkven

Carmen Reichman
25 June 2012

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Cinven Partners has acquired Turkish alarm systems provider Pronet Güvenlik in a secondary buyout from Turkven Private Equity and other institutional shareholders.

The GP plans to support the company's further growth and expand it into surrounding regions including Eastern Europe, the Middle East and Asia.

The deal was initiated by Cinven's business services team, which conducted research across the European alarm systems sector, and the GP's Turkish partner Yalin Karadogan. The business was acquired in an auction.

The GP plans to support further growth for Pronet and expand it into surrounding regions including Eastern Europe, the Middle East and Asia.

Cinven invested via its fifth fund, which held a first close on €3bn earlier this year. The fund is believed to be targeting a €5bn final close by the end of 2012. Alongside Pronet, Cinven also bought Prezioso Technilor, a French coating and insulation business, via its fifth vehicle.

Debt
The company's existing debt structure was rolled over as part of the buyout.

Previous funding
Turkven acquired a majority stake in Pronet in March 2006 in a deal valued at €8.38m.

The GP drove growth by introducing indirect sales alongside direct sales across Turkey. It also expanded the business into Turkish cities outside Istanbul.

Company
Pronet provides security electronic alarm systems for residential and commercial use. The company's main income is a recurring revenue stream derived from its 130,000 subscribers in Turkey.

Established in 1995, the business is headquartered in Istanbul and employs 1,500 staff in offices across Turkey.

People
Pronet's CEO Alex McNutt will stay with the company. Guy Davison and Yalin Karadogan are partners at Cinven.

Advisers
Equity – Deloitte (Financial due diligence, tax); Citi (M&A); Freshfields (Legal); Pekin & Bayar (Legal); Marsh (Insurance due diligence).
Vendor – Goldman Sachs (M&A); PricewaterhouseCoopers (Financial due diligence); YKK (Legal); Van Campen Liem (Legal).