SCT Télécom (France) - Nov 2007

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01 November 2007

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Astorg Partners has completed the leveraged buyout of small and medium-sized enterprises (SMEs) telecommunication services provider SCT Télécom. The buyout house, investing via its Astorg IV fund, took a 52% stake, with the management investing the balance. The company was formally 100% owned by its managing founder and key managers. The investment opportunity was sourced privately, through Astorg’s relational network. Negotiations began in early 2007. Barclays Bank, which also worked on Apax-backed Outremer Telecom, provided a two-tranche senior debt package as well as a mezzanine strip.

Company

Founded in Saint-Denis in 1997, SCT Télécom historically offered French SMEs discounts on their telecom bills thanks to its wholesale orders. The offering now includes simplification of the telecom bill, discounts on fixed communication (minutes and subscription via unbundling), mobile communications and PABX, and post-sales service. The company’s turnover has increased by more than 40% annually over the past five years and currently stands at approximately €50m. The business hopes to double sales within three to five years, thanks to a widening of the firm’s services to include VoIP and MVNO, the increasingly comprehensive geographical coverage of its agencies and some opportunistic acquisitions in this reportedly fragmented market

People

Pascal Noguera and Alexandre Vannelle worked on the transaction on behalf of Astorg Partners, while Bénédicte Leneveu and Thibaut Arles arranged the senior debt and mezzanine for Barclays Bank. Pascal Chaboisseau is SCT Télécom’s founder and CEO.

Advisers

Debt - Norton Rose LLP, Erwan Hericotte, Karine Tollemar (Legal)Equity - Arthur D Little, Jean-Luc Cyrot, Vincent Teulade (Other Due Diligence)Equity - Landwell & Associés, Bernard Borrely, Fabien Radisic, Nicolas Granier (Other Due Diligence)Equity - Lovells, Alexis Terray, David Guez, Olivier Fille-Lambie (Legal)Equity - Marsh, Humbert d’Autichamp, Jean-Marie Dargaignaratz (Insurance Due Diligence)Equity - Niji, Eric Maloisel, Patrick Jollivet (Technical/IT Advice)Equity - PricewaterhouseCoopers, Didier Sidois (Financial Due Diligence)Vendor - Mayer Brown, Olivier Aubouin, Pierre-Olivier Bernard (Legal)