PE firm GMT Communications Partners has acquired UK-based conferencing and collaboration service provider MeetingZone for £38.5m.
MeetingZone, which has operations in the UK, North America and Germany, posted £11m in revenue for the year to the end of…
PE firm GMT Communications Partners has acquired UK-based conferencing and collaboration service provider MeetingZone for £38.5m.
MeetingZone, which has operations in the UK, North America and Germany, posted £11m in revenue for the year to the end of March 2011.
European TMT focused GMT expects the group’s turnover will grow by more than 20% in the next financial year as it builds on its blue-chip client base.
As well as increasing customer numbers and ARPU, MeetingZone plans to expand into new markets in Europe and Asia-Pacific, and continue to develop its service offering.
Announcing the acquisition on 1 August, the companies said the business is being acquired from its two founders, Tim Duffy and Steve Gandy, and PE firm Nova Capital Management, which has been investing in the businesses since 2006, and other minor shareholders.
Previously, 30% of MeetingZone was owned by Nova, with 40% being owned by its management. Following the transaction GMT owns 80%, with management holding the remaining 20%.
The plan sees Duffy and Gandy, who founded the group in 2002, remain in the management of the business. Gandy will continue in his role as CEO of MeetingZone, while Duffy will move from executive chairman to non-executive chairman.
To finance the acquisition, GMT secured a senior debt facility worth £16.0m from Clydesdale Bank.
Weil, Gotshal & Manges provided legal advice to GMT. KPMG and DLA Piper advised Nova and MeetingZone management on the transaction.
The acquisition is GMT’s second for 2011, following the carve-out in April of the Swedish and Danish legal and tax & accounting businesses of media group Thomson Reuters, recently renamed Karnov Group.
It has also exited two portfolio investments in the past year: German cable operator PEPcom in August 2010 and German online gaming company Bigpoint in April this year.
