JZ International acquires Xacom Comunicaciones

Southern Europe unquote
JZ International, the Europe-focused investment arm of JZ Advisers, has bought a 60% stake in Spain’s Xacom Comunicaciones as part of a buyout transaction.
KEY FACTS 
Xacom Comunicaciones
DEAL – Buyout
VALUE – €27m
DEBT RATIO – 44%
LOCATION – Madrid and Barcelona
SECTOR – Telecommunications providers
FOUNDED – 1991
TURNOVER – €30m
EBITDA – €5m
STAFF – 30
VENDOR – Management
The deal, which had an Enterprise Value of €27m, saw the majority shareholding purchased from the company’s management team, which retained a 40% stake. They were approached directly by the private equity firm, which channelled its investment via JZ Capital Partners, a $700m fund.
JZ International is the owner of 14 portfolio companies in Spain, which provide services to more than 100,000 clients, mostly SMEs. The investor’s plan is that these SMEs will provide an ideal target audience for Xacom’s services. JZ will also lead the company in its internationalisation plans, expanding its services into the rest of Europe, particularly England, Germany and the Czech Republic, as well as Latin America.
Xacom is a major firm in the machine-to-machine services niche – which JZ maintains is the fastest-growing segment of the telecommunications sector.
Debt
The transaction was supported by a debt package worth €12m, which has been provided by a syndicate of Spanish banks.
Company
Xacom Comunicaciones is a major Spanish firm involved in the development, manufacturing and distribution of equipment for wireless and mobile communication. It was founded in 1991 and has headquarters in both Madrid and Barcelona.
Last year, the company generated revenues of almost €30m and an EBITDA of €5m. It employs 30 people.
People
Miguel Rueda, partner and managing director, led the deal for JZ International and joins the company’s board as executive chairman.
Luis Santos, founder of Xacom, will remain as managing director of the company.
Advisers
Equity – Roca Junyent, Francesc Baygual (Legal).
Vendor – Eurohold (Corporate finance); Garrigues (Legal).