Cinven's HEG buys Telefónica Germany Online Services

HEG received fresh capital from Cinven's fifth fund, the €5.3bn Fifth European Buyout Fund, to finance the deal.

The two companies are going to merge their services, operating under the name Host Europe Group.

HEG was acquired by Cinven for £438m from Montagu Private Equity in July this year, with the investment being made via the GP's fifth fund as well. The transaction was leveraged via a debt package provided by 10 banks and consisting of £255m of senior secured credit facilities, including undrawn facilities.

The firm provides hosting and domain services to consumers as well as small and medium-sized enterprises across Europe.

HEG reported an EBITDA margin of 16% as well as a 22% CAGR in revenues over the past four years, and expects to generate double-digit growth this year.

Company
TOS was a subsidiary of Telefónica Deutschland, which is part of Spanish telecommunication group Telefónica. It is headquartered in Gütersloh and Munich. The firm was founded in 2011.

TOS provides hosting solutions, customer-specific application services and portal projects.

People
Thomas Vollrath is the CEO at HEG. René Schuster is CEO of Telefónica Deutschland. Kai Stemick is CEO of TOS.

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• Topics
• DACH
• Technology
• Expansion
• Germany
• Cinven
• Acquisition finance