Alarm System Business Sold to Cinven

Cinven has reached an agreement to acquire a majority stake in Pronet Güvenlik, a provider of security electronic alarm systems in Turkey. Pronet has been acquired from its institutional shareholders including Turkish Private Equity Fund I L.P., advised by Turk Ventures Advisory Limited and Dutch Development Bank. Established in 1995, Pronet is headquartered in Istanbul with operations across Turkey through its own offices and dealer networks.

PRESS RELEASE

European private equity firm Cinven today announces that it has reached agreement to acquire a majority stake in Pronet Güvenlik (‘Pronet’ or ‘the Company’), a leading provider of security electronic alarm systems in Turkey.
Pronet has been acquired from its institutional shareholders including Turkish Private Equity Fund I L.P., advised by Turk Ventures Advisory Limited (Turkven), and Dutch Development Bank (FMO). The transaction is subject to regulatory clearances and it is expected to close during summer.
Pronet is the leading electronic security systems company in Turkey, primarily installing and monitoring residential and commercial alarm systems, as well as installing integrated electronic systems. It has more than 130,000 residential and commercial subscribers across Turkey and has a recurring revenue stream from its installed customer base. In the past four years, its subscriber base has grown by a CAGR of more than 40%. Pronet has unmatched security expertise and provides unparalleled customer service in the Turkish market.
Established in 1995, Pronet is headquartered in Istanbul with operations across Turkey through its own offices and dealer networks. It has customers across 81 cities and employs around 1,500 staff.
Penetration of the Turkish monitored alarm market remains relatively low compared to Europe and the US. Increasing penetration is supported by rising Turkish disposable income, favourable demographics, greater urbanisation and awareness of security risks. Cinven, along with management, expects to further grow the business through additional expansion of Pronet’s direct and indirect sales capabilities across Turkey and the surrounding region.
Alex McNutt, Chief Executive Officer of Pronet, will lead the management team with extensive experience in the residential and SME alarm market. He joined Pronet as Chief Executive Officer in April 2010 and has significant prior experience at ADT, where he was President of Europe and South Africa.

Commenting on this transaction, Yalin Karadogan, Principal at Cinven, said:
“Pronet has a very experienced management team and we look forward to working with them as the Company enters its next phase of growth. We believe that Turkey presents considerable investment opportunities given it has the second largest population and sixth largest economy in Europe with a strong medium-term GDP growth outlook. We have been able to originate and execute this investment through our significant industry expertise and our in-depth knowledge of Turkish market dynamics. We will also review opportunities to expand Pronet’s business internationally in surrounding regions where there are low levels of penetration in the alarm market, such as Eastern Europe, Middle East and Asia.”
Guy Davison, Partner at Cinven, added:
“Our investment in Pronet clearly demonstrates our ability to identify companies with strong growth prospects within Europe and, in particular, Emerging Europe. Our Business Services team had undertaken significant research in the European alarms monitoring market, given the unique visibility of recurring revenues and growth prospects in this relatively resilient sector. We had been following Pronet for a long time as Turkey’s leading security brand, the fastest growing company in its field in Europe and given its exceptional service quality.”
Alex McNutt, CEO of Pronet, added:
“We are very excited about partnering with Cinven. We have been impressed not only by Cinven’s knowledge of our sector but also the Turkish market. We believe they share our growth vision for the company given their experience of successfully growing businesses across Europe. Their investment in the business will enable us to capitalise on our growth plans in Turkey and in the region.”
Cinven’s advisors on the transaction include: Deloitte (financial, tax); Citi (M&A); Freshfields (legal); Pekin & Bayar (legal); and Marsh (insurance).
Sellers’ advisors on the transaction include: Goldman Sachs (M&A), PWC (Financial), YKK (Legal), Van Campen Liem (Legal)
Closing of the transaction is subject to regulatory approvals.

For further information:
Vanessa Maydon Cinven Tel.: + 44 (0) 20 7661 3325 / + 44 (0) 7802 961 902 vanessa.maydon@cinven.com
Ed Bridges / Marc Cohen (PR Adviser to Cinven) FTI Consulting Tel.: + 44 (0) 20 7831 3113 cinvenuk@fticonsulting.com
Notes to editors About Cinven
Cinven Partners LLP
Warwick Court Paternoster Square London EC4M 7AG
Tel +44 (0)20 7661 3333 Fax +44 (0)20 7661 3888 www.cinven.com
 Cinven is a leading European private equity firm focused on building world-class
European companies. Cinven has a strong and consistent investment track record.
Since the firm was founded in 1977, we have completed transactions valued at in
excess of €67 billion.
 Cinven invests in six key sectors: Business Services, Financial Services, Industrials,
Consumer, and Technology, Media and Telecommunications (TMT).
 Its dedicated Business Services team has invested over €7 billion in companies in
the sector. Its most recent investment is CPA Global, the leading global provider of IP
management services and software in March 2012.
 Cinven’s recent investments across all sectors include CPA Global, Guardian
Financial Services, SLV, EnServe, Avolon and Sebia.
 In the past 12 months, Cinven has exited its highly successful investment in
Amadeus (Business Services), which generated a 7x return; Phadia (Healthcare)
which generated a 3.4x return and Ahlsell (Industrials) which generated a 1.9x return.
 Cinven’s portfolio companies have a significant presence across Emerging Europe in
countries including Cyprus, Czech Republic, Hungary, Poland, Romania, Russia and
Slovakia.
 Cinven has offices in Guernsey, London, Paris, Frankfurt, Milan, Hong Kong and
Luxembourg. Cinven Partners LLP is authorised and regulated by the Financial
Services Authority.
 Cinven acquires successful high quality companies. Using proven value creation
strategies, we work closely with these companies, helping them to grow and develop.
Cinven takes a responsible approach towards its portfolio companies, their
employees, suppliers, local communities, the environment and society.

For further information www.cinven.com
About Pronet
 Pronet, established in 1995, is the major and leader electronic security company in Turkey with over 130,000 active security systems and over 500 integrated security projects.
 Pronet offers electronic security services and solutions for residential and commercial customers and integrated security systems for corporate customers such as public institutions, industrial plants and banks.
 Pronet not only sets up electronic security systems, offers a state of the art alarm monitoring service and superior after sales support services which provides high customer satisfaction rates.
 Pronet’s ambition is to offer the best of service to its clients today and in the future through its unmatched experience in security sector, with its work force reaching 1,500 employees.