Denmark’s CyberCity, acquired in March by a syndicate of investors led by Advent International, has attracted a second round investment of $53 million. Lehman Brothers Communications Fund, Merrill Lynch Private Equity, Danske eVentures and Four Seasons Venture have joined Advent in this latest round.
Following Advent’s euro41 million buyout of CyberCity in March 2000, which was backed by Merrill Lynch and Four Seasons Ventures, CyberCity has seen substantial growth. The company will continue to focus on elements that helped to ensure its growth; high quality managed services, including high-speed access lines, IP VPNs and hosting with built-in security features.
CyberCity’s shift from a traditional dial-up ISP to a next generation communications provider serving the SME and high-end residential markets reflects the strategy adopted since the buyout. With this round of funding CyberCity is ready to extend its product scope, expand in Scandinavia and make selective acquisitions.
One of Europe’s first independent broadband local access providers, CyberCity has been profitable since its 1995 launch. Last year, the turnover for the whole company was approximately euro30 million, representing a 68 per cent increase on 1999. During this period the company focused on its DSL (Digital Subscriber Line) service in Denmark, where it now has 14,000 operational DSL customers and expanding coverage to include Norway and Sweden.
John McEvoy, managing director of Lehman Brothers Communications Fund, will join John Bernstein, director of Advent International, as a member of CyberCity’s board of directors. John Bernstein said: “CyberCity is a rare example of a highly successful DSL and broadband IP services company. This financing is at an increased value to our acquisition of the company in March 2000 an achievement made possible by CyberCity’s fast growth and sound business model.”
John Bernstein and James Brocklebank at Advent led this latest funding round.
Other advisors on the transaction included Kromann Reumert, which acted for CyberCity and Advent International.