Feeds

VC firm rumoured stalking Energis

VCs who still have money? Quick people, after them...

  • alert
  • submit to reddit

Intelligent flash storage arrays

ComputerWire: IT Industry Intelligence

When Mike Grabiner stood down as CEO of Energis Plc last May, he said his next job "won't be in telecoms." Nine months later he may have been true to his word by joining venture capitalist Apax Partners, but reports over the weekend claim his new employer is about to launch a bid for the beleaguered carrier.

While a spokesperson for London, UK-based Energis refused to comment on speculation, it has said that it will sell off its loss making European operations, and it now it appears that it is actively looking for a buyer for the whole company, and is on the verge of breaching banking covenants.

A spokesperson for Apax Partners refused to confirm or deny the speculation, but it is thought to be one of a few venture capital companies interested in bidding to take over the company.

Whichever company is successful in purchasing the company for a knockdown price will also have to negotiate with bondholders and come to an agreement with bankers who are owed £725m ($1.03bn).

Energis's problems started to become apparent months after Grabiner resigned his position without another job to go to. The company's woes stem mainly from its acquisitions in continental Europe, rather than its core UK market, where it has been profitable. Last week Energis confirmed that its core UK operations are expected to account for approximately 75% of its overall revenue and 125% of its EBITDA for the year ending March 2002. However, its continental European operations have been disastrous, and it is now seeking to dispose of them.

Energis built its European operations through a £1bn ($1.4bn) acquisition spree. It showed its European ambitions in November 1999 when it bought Dutch telecoms operator EnerTel NV for £352m ($570.2m). It then spent £60m ($97.6m) on the acquisition of Unisource Carrier Services (UCS), which gave it control of an ATM network with licenses in 12 countries, national interconnect agreements in seven countries, and points of presence in 13 European countries and the US.

At the beginning of last year it completed the purchase of 75% of German web hosting and application provider Ision Internet AG for £496m ($723m). A few months later it was able to purchase nearly all the remaining shares for £86.8m ($126m). Since then the German web hosting market has collapsed, and Energis will struggle to get $30m for it now.

© Computerwire.com. All rights reserved.

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Hey Brit taxpayers. You just spent £4m on Central London ‘innovation playground’
Catapult me a Mojito, I feel an Digital Innovation coming on
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
EU probes Google’s Android omerta again: Talk now, or else
Spill those Android secrets, or we’ll fine you
prev story

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.