BS Private Equty Buying Tiscali International Network

BS Private Equty, a Milan-based private equity firm, has partnered with BS Investimenti to acquire Tiscali’s international network business for €47m (US$60m).

Tiscali International Network supplies internet connectivity on three continents and had EBITDA of €10m on sales of €35m in 2008.

Parent group Tiscali has been in play for much of the last year, with BSkyB still believed to be in negotiations regarding the purchase of its UK activities with a price tag of up to £500m.

Others to have been linked with the sale include Vodafone, BT, Naguib Sawiri’s Wind and Italy’s Fastweb, while Carphone Warehouse was said to have revitalised its interest last September after pulling out of the auction earlier in the year.

At the end of last month, Tiscali said that it will cut 250 jobs in Italy as it attempts to reduce its operating costs by approximately €40m.

BS Private Equity’s previous investment in the telecom sector was Nodalis, sold in 2000, although it had two telecoms equipment portfolio companies in the 1990s. The firm’s current investments include Tecnowind, Arena Carapelli Firenzi and Ducati Motor.

Last year, the firm went some way to strengthening its base by selling a 20% stake in its management company to Italian investment bank Gruppo Banca Leonardo.

At the same time, Gruppo Banca Leonardo committed €20m into BS Private Equity’s fifth fund, which has a target of €600m.

Source: Thomson Merger News