UBS Capital leads 2nd round for VDSL Systems

Investee Company – VDSL Systems Oy (Finland)

Investee Company Business Type – Develops and sells VDSL systems and modems; provides IP-based broadband access equipment

Type of Financing – Expansion

Equity Providers – UBS Capital, 3i Group, Kennet Capital, ACR

Equity Leader (Individual) – Kevin Smith, UBS Capital

Debt Providers – N/A

Debt Type – N/A

Debt Leader (Individual) – N/A

Equity Amount – euro12.4 million

Total Deal Value – euro12.4 million

Other Advisors – Borenius & Kemppinen

Comments – UBS Capital has led a second round investment of euro12.4 million in VDSL Systems Oy. The company’s existing investors, 3i Group, Kennet Capital and ACR participated alongside the euro7 million investment proffered by UBS Capital.

The Finnish-based technology company provides IP-based very high-speed digital subscriber line (VDSL) solutions to the telecom, hospitality and multi-tenant industries.

The core activities of the company involve the development, marketing and sales of VDSL IP-based broadband access equipment for existing copper networks. The result is 10-26 Mbps speeds over the last mile on existing copper.

VDSL’s rate adaptive hardware and software allows network service providers to remotely provision and deliver ‘virtual fibre’ connections that scale from below 1Mbps to 100Mbps on demand for any customer application.

VDSL Systems was founded in 1999 and currently employs 60 people, however it is expected that the team will grow to over 75 by year end. The company has also received financing from Finnish State-owned financing company Finnvera and from the national technology agency in Finland, Tekes.

Managing director of european technology investment at UBS Capital, Kevin Smith, said: “UBS Capital supports the development of technologies that dramatically extend the performance of existing network topologies.”