Shearman & Sterling advised Carlyle and other shareholders in connection with the entry into exclusive negotiations to sell a controlling stake in Euro Techno Com Group (“ETC” or the “Company”), a leading “one-stop shop” value-added distributor for the telecom network and technology infrastructure industry, to Cinven. As part of the transaction, Carlyle will re-invest for a significant minority stake.
Carlyle invested in ETC through Carlyle Europe Technology Partners (“CETP”) IV, a €1.35 billion fund that invests in small and mid-market technology-focused opportunities. Through Carlyle’s partnership with Founder Cédric Varasteh, ETC has delivered exceptional growth. The Company has tripled revenue which exceeded €1 billion in 2021, increased staff from 440 to 1,100 employees, and has expanded its geographic footprint from 4 to 12 countries—consolidating a strong position in the attractive U.S. market, which represents more than half of its sales. Leveraging its deep technology and telecom sector experience, Carlyle has supported ETC’s organic growth through investment in new product segments (mobile, datacenter, metrology) as well as R&D for ETC designed products and innovative solutions. Carlyle has supported the business through M&A, transforming ETC into a leading consolidation platform in a highly fragmented market, notably with the acquisitions of Comtec in the U.K., and Walker & Associates and Comstar Supply in the U.S. Cédric has worked with Carlyle to implement operational and organizational changes to strengthen the Company’s management capabilities and increase its scale.
The transaction is subject to works council consultation and customary regulatory approvals.