Case References

SecuriNet AS
 

SecuriNet AS had a history with Telenor since the early 1980s. The company is a vendor of monitored alarm services through its own nationwide ALTEL communications network. The ALTEL network has direct connectivity with all national emergency centres and SecuriNet runs the management of the network on a 24/365 days basis. A range of complementary products, both software and communication services, is also provided by the company.

Kistefos purchased SecuriNet AS from Telenor Venture III AS in July 2004, through a special purpose vehicle; SecuriNet Holding AS. The leveraged buyout (LBO) transaction was financed with a gearing of 70%. Kistefos took an active role in the company. While sales grew with just 4% in 2004, from NOK111.7m in 2003 to NOK116.4m in 2004, the profitability was increased substantially. Through improved operational efficiency and cost reductions EBIT was raised by 61% in 2004, from NOK14.0m in 2003 to NOK22.5m in 2004.

In September 2005 SecuriNet AS was sold to the British private equity fund GMT Communications Partners Ltd. The investment in SecuriNet AS yielded an internal rate of return (IRR) of approximately 170% for Kistefos in just over 13 months.