Riverside’s private equity

News Release

The Riverside Company Acquires KEYMILE along with Co-Investor Halder November 03, 2011

Technologically leading supplier of telecommunications services partners for further Internationalisation and Product Expansion

Hannover/Munich/Frankfurt, 03 November 2011 – Private equity firms The Riverside Company and Halder have acquired KEYMILE-Group. The transaction is the 21st acquisition for Riverside in 2011, and its third investment in Germany this year. Former investor HANNOVER Finanz Group, as well as former CEO Dr.-Ing. Ziaedin Chahabadi, sold their stakes to the private equity firms. Riverside is the new majority shareholder, Halder holds a substantial share and KEYMILE management have increased its previous shareholdings.

Today KEYMILE has become a leading supplier of communication solutions in the field of access and transmission systems. The flexible and robust IP-based multi-service access platforms allow telecommunication providers to supply a variety of voice and data services over copper and fibre optic cable. The simultaneous availability of IP/Ethernet and traditional TDM Technology ensures a smooth migration to Next Generation Network. The company’s customers include EWE Tel, htp, NTL, TelNet and international carriers such as GVT (Brazil) and Invitel (Hungary). Utility companies such as E.ON and the German and Swiss railways are also customers. KEYMILE has 430 employees and reported sales of €120 million in 2010.

“KEYMILE is an established telecommunications provider with a strong market position,” says Riverside Principal Peter Schaberger. “We were impressed and compelled by the company’s strong focus on R&D and its agility in responding to customer requests. Our goal moving forward will be to expand its product portfolio while strengthening its competitive position in existing markets.”

Thomas Fotteler, partner at Halder, points out the strategic fit: “Companies showing a leading market position, good management and a sustainable competitive edge are typical targets for Halder. KEYMILE is an innovative specialist for multi-access-systems with a high potential for internationalization – a precise match for our MBO experience in the SME segment.” “We thank HANNOVER Finanz Group for their cooperation and partnership to date, and we look forward to our new partnership with The Riverside Company and Halder to continue the growth story of KEYMILE. New markets and new technologies are our common goals, and we are firmly convinced that the know-how of our employees and our ongoing commitment to meet the highest standards of quality will continue to convince our customers,” says the new CEO Björn Claaßen, who has also served as COO of KEYMILE. “Our new investors’ global network as well as their 20 years of experience in helping companies grow will surely help us further expand KEYMILE’s business.”

The Riverside team responsible for the investment was led by Munich-based Principal Peter Schaberger, and supported by Vice President Balázs Tahy and Senior Associate Sven Schulze. The Halder team consisted of partners Thomas Fotteler and Michael Wahl, and Investment Manager Christian Muschalik.

Sascha Pfeiffer of DC Advisory Partners advised on the acquisition process, and finance for the transaction was provided by Raiffeisen International Bank, Bayerische Landesbank, LBBW und KBC.

At HANNOVER Finanz Group the transaction team consisted of CEO Andreas Schober, in addition to Martin Walka, Investment Manager Volker Tangemann and Corporate Counsel Jörg Swoboda.

About The Riverside Company
The Riverside Company is a global private equity firm focused on acquiring growing enterprises valued at up to $200 million (€200 million in Europe). The firm partners with strong management teams and enhances its investments through acquisitions and organic growth. Since its founding in 1988, Riverside has invested in more than 260 transactions with a total enterprise value of more than $5.8 billion / €4.7 billion. The firm’s portfolio in North America, Europe and the Asia-Pacific region includes more than 75 companies with roughly 14,000 employees. Riverside completes acquisitions smoothly thanks to $3.4 billion / €2.7 billion in assets under management, more than 200 professionals in 20 offices, and longstanding relationships with partner lenders.

About Halder
Halder has been an active MBO investor in the German middle-market since 1991. KEYMILE represents the 32nd involvement and third investment for its €325 million fund, Halder Gimv Germany II. The other two investments include window profile manufacturer Gaelen, and turbocharger specialists CCN. The fund is advised by Halder Consulting GmbH, Frankfurt and in total will invest in 10 companies. Halder is part of GIMV, a listed European private equity and venture capital group. GIMV focuses on buyouts, growth capital, venture capital and infrastructure investments. More information on http://www.gimv.com .

About Keymile
KEYMILE is a leading supplier of communication solutions in the field of access and transmission systems. The flexible and robust IP-based multi-service access platforms allow telecommunication providers to supply a variety of voice and data services over copper and fibre optic cable. The simultaneous availability of IP/Ethernet and TDM Technology ensures a smooth migration to Next Generation Network. In the telecommunication networks of railways and utility providers, as well as in mobile and radio networks, KEYMILE systems are used for secure data transmission in mission-critical areas. The company has headquarters in Germany and Switzerland and is represented worldwide through subsidiaries and partners, which can provide system installations in more than 100 countries.

About Hannover Finanz Group
Founded in 1979 the HANNOVER Finanz Group has, has over 30 years of experience. Based on long-term investments in middle-size enterprises in German-speaking countries, the firm currently has 9 active ’evergreen’ funds with an unlimited term. The engagements range from traditional industries through trade, to new technologies. Involvement from the group generally includes growth financing and succession planning for growing, medium-sized enterprises, with at least €20 million in annual sales. In addition to majority ownership transactions, HANNOVER Finanz Group has some minority investments.

Media Contacts

North America and Asia Pacific
Graham Hearns
Director of Marketing and Communications
The Riverside Company
+1 216 535 2221

Europe

Sarah FlahertyMarketing and Public Relations Manager
The Riverside Company
+44 7825 33 46 57