Advent consortium sells Cybercity

Private equity-backed Cybercity, a Danish provider of Internet and broadband services, has been sold to Telenor for DKK1.385bn (E186m).

Advent, Four Seasons Venture Capital, Merrill Lynch and Nordic Venture Partners acquired Cybercity in March 2000. Lehman Brothers then got involved in 2002 and with Advent became the principal shareholders, with Advent International GPE III having a 50% interest.

Since that time Cybercity has changed from being a dial-up ISP to becoming Denmark’s leading independent and fastest growing broadband service provider, with an overall DSL market share of 12%. Cybercity was one of the first European broadband companies to turn EBITDA positive, in Q4 2001, and has been free cash flow positive since Q4 2003. In 2004, the company grew revenue by 34% and EBITDA by 72%.

Telenor is a Norway-based communications, IT and media company. The business has just beaten off competition from Advent and Apax for Swedish broadband company Bredbandsbolaget.