Cinven and Warburg Pincus ink Dutch Telecom deal

The Dutch telecommunications market is in the early stages of an extended period of infrastructure and service convergence and Cinven and Warburg Pincus are determined to be in on the action.

The two private equity houses are acquiring Casema, the third largest cable operator in the Netherlands from The Carlyle Group, GMT Communications Partners and Providence Equity Partners in a secondary buyout transaction. As part of the transaction, Warburg Pincus’ stake in the fourth largest Dutch cable operator, Multikabel, is to be contributed to the new holding company bringing the total value of the transaction to €2.85bn.

Caseman and Multikabel will co-operate in providing cable services to the Dutch market. The combined company’s revenue for the financial year ending December 31, 2006 would have been €416m.

This is the first investment for the fourth Cinven fund. David Barker, a partner at Cinven is delighted to have secured the combination of Multikabel and Casema as the fund’s inaugural investment.