Star Capital exits Pepcom to Tele Columbus for €608m

The purchase price equates to 10x EBITDA based on the 12 months to June 2015 and values the company at 9.5x forecast EBITDA for 2015.

During Star's investment period, Pepcom acquired HL Komm, a Leipzig-based city carrier. It also started partnership initiatives with municipalities and town communities to build new infrastructure and thereby expand the customer base. Star further replaced the company's management team.

Star bought Pepcom through its Star II fund. Another realised company from the fund is Eversholt Rail Group, which was sold for an equity value of approximately £1.1bn. 

Tele Columbus announced its revenues for the second quarter of 2015 at €54.3m, with an EBITDA of €27.7m.

Previous funding
Pepcom was acquired by Star from GMT Communication Partners and Veronis Suhler Stevenson in August 2010, in a deal valued between €280-300m. 

Company
Based in Unterföhring, Pepcom was set up in 2001 as an acquisition vehicle for the consolidation of small to medium-sized cable TV operators in Germany. The company provides services including analogue and digital TV channels, broadband and voice-over-internet-protocol telephony.

Today, the business counts 580,000 unique subscribers as well as 1,600 business customers. For 2014, Pepcom generated revenues of €126.3m revenues and EBITDA of €57.3m.

People
Uniti Bhalla is partner at Star. Uwe Nickl is the CEO of Peocom.

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