Vydis, an important information and telecommunications technology services and solutions supplier, is planning dynamic growth under the wings of Genesis Capital
Prague, 7 October 2010
Genesis Capital, one of the largest private equity fund managers in the Czech Republic, has completed another acquisition. After acquiring a majority interest in Profimedia, the largest domestic photo bank, in June, it has now made a capital investment in Vydis.
The completed transaction has given Genesis Capital a 75% interest in Vydis. The resources for the financing of the acquisition come partially from the GPEF II fund, which Genesis Capital manages, while part is financed through a bank credit. The remaining 25% was purchased by Vydis managers. Such structure is a typical example of a management buyout transaction.
“The capital investment in Vydis has clear logic behind it. This dynamically growing company is in a stable sector with significant growth potential. It enjoys a good market position and a diversified customer portfolio, which includes all the leading domestic telecommunications operators. Last but not least, Vydis has a strong and stable management team which is actively participating in the investment and is the guarantee of further development of the company, and therefore also of good yields for our fund’s investors,”said Genesis Capital Managing Director Jan Tauber.
VYDIS s.r.o., whose name is derived from the initial letters of “VÝstavba DIgitálních Sítí” [Digital Networks Construction], with registered offices in Dolní Břežany on the outskirts of Prague and many branches throughout the Czech Republic and in Slovakia, has been operating on the Czech and Slovak markets since 1994. It is a leading domestic supplier of integrated solutions and products in the field of information and telecommunications technologies, optical and metallic networks, measuring systems and software. It is also an authorised partner for several international manufacturers. Its services are used by telecommunications operators, technology companies, developers, construction companies and state administration, city and municipality investors. After a successful 2009, which saw not only a sharp rise in the number of employees but, most importantly, sales, further expansion is expected for 2010 with sales of over CZK 200 million.
“Prerequisites for the continuation of dynamic growth are not only our motivated and loyal employees but also a strong financial foundation, which Vydis has acquired owing to the Genesis Capital fund,” stated Vydis Director Petr Kysučan.
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Genesis Capital
Genesis Capital is a prestigious company involved in the management of private equity funds for small and medium companies. The company is based in Prague and has been active on the Czech and Slovak markets since 1999. Genesis Capital is the only private equity company managing funds for international financial institutions and private investors to focus exclusively on the small and medium company segment in the Czech Republic and Slovakia. The current team consists of seven highly qualified investment professionals with extensive experience in the field of private equity investment and previous experience in many other fields.
Genesis Capital manages three private equity funds with a total volume of EUR 90 million. Genesis Capital has invested in more than 20 companies over the last 10 years. It has now sold 10 of these companies and, in most cases, achieved an attractive return on investment. Nine companies currently remain in the Genesis Capital portfolio, whose total turnover exceeds EUR 170 million and which employ a combined total of more than 3,000 people. Companies in which Genesis Capital has invested include AB Facility, Pietro Filipi, CCS, ETARGET, Gumotex, Energetické strojírny Brno, and Roltechnik.
In the current environment, characterised by difficult access to standard bank financing for small and medium companies, Genesis Capital funds represents a good alternative by which companies with potential growth can obtain required capital. However Genesis Capital funds also provide financing for company buy-outs. Fund investors include the European Bank for Renewal and Development, Česká spořitelna and the Belgian investment company, Gimv.