Astorg Partners will acquire a majority stake in CDS Topco BV, a retail and wholesale supplier of DTH services known under the name of M7.
The shares are acquired from Providence Equity Partners. Following the closing of the transaction, Providence and Airbridge Investments BV will continue to be significant minority shareholders of M7. Terms of the transaction were not disclosed.
Providence acquired a majority stake in CDS in 2007 when the company served approximately 750,000 subscribers through its operations in the Netherlands (Canal Digitaal Satelliet) and Flanders (TV Vlaanderen).
Since then, the company has entered a number of new markets and extended its service range via both acquisitions and organic initiatives, including launching new platforms in Wallonia (TeleSat), Austria (AustriaSat) and Hungary, acquiring a number of DTH satellite TV platforms in the Czech Republic and Slovakia (Skylink), as well as acquiring the broadband business Euronet/Online in the Netherlands. Today, M7 serves more than three million subscribers.
“This transaction demonstrates the strength of M7’s business, which has undergone a significant transformation under Providence’s ownership,” said Marco Visser, CEO of M7, in a statement.
“We look forward to working closely with the Astorg team as well as our current shareholders to continue on our growth trajectory in the years to come.”
Joel Lacourte, managing partner at Astorg, said, “M7 will take Astorg Partners one step further in its Pan-European strategy. M7 combines all the qualities of a performing asset: excellent track record, professional management, high growth and strong customer franchises. We are delighted to join forces with the architects of this success.”
Andrew Tisdale, a managing director at Providence, said, “We’ve been fortunate to work alongside our fellow shareholders and a dedicated management team to help transform M7 into a truly pan-European diversified and growing pay TV platform by scaling and diversifying the business through both organic growth and acquisitions. We believe M7 is poised for continued growth and expansion under Astorg Partners’ majority ownership, and we look forward to partnering with them.”
The transaction, which is expected to close in the third quarter of 2014, is subject to regulatory approval and customary closing conditions. Deutsche Bank and BNP Paribas served as financial advisors to Providence and Emendo Capital advised Astorg on this transaction.
