DBAG-backed Netzkontor buys BFE Nachrichtentechnik

The telecommunications service was acquired by DBAG's Expansion Capital Fund (ECF) in January 2018. DBAG did not provide fresh equity from this fund to finance the acquisition of BFE.

DBAG ECF asks its LPs to renew their commitments to the vehicle at the end of each investment period. It initially raised €250m for DBAG ECF in 2011, which was deployed across nine companies. Subsequently, it raised a further €85m for its "First New Vintage" in 2017, which acquired three more businesses; and a further €97m for its "Second New Vintage" in 2018, which has made two primary investments to date.

The addition of BFE doubles the number of Netzkontor's employees from 140 to 280. It is the second bolt-on the group has made since DBAG's original investment after the acquisition of Rodenberg-based Bib Tech in May.

Company
BFE was founded in 1971 and is headquartered in Leipzig. It was originally a provider of telephone terminal assembly for the Bundespost. In the 1980s, the West German government paved the way for internet infrastructure, and BFE was active in cable assembly, as well as services for cable networks. After the German reunification in 1990, BFE strengthened its engagement in the states of the former East Germany. It employs 140 people.

People
Deutsche Beteiligungs AG – Thorsten Grede (spokesperson for board).
Netzkontor Gruppe – Peter Schmidt (managing partner).

Advisers
Company – Acxit Capital Partners, Andreas Thümmler, Sebastian Engelbrecht (corporate finance).

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• Topics
• Portfolio management
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• DACH
• Germany
• Deutsche Beteiligungs AG
• Build-up