XLN Telecom

Sector: Telecom
Deal Type: Management Buy Out
Region: South East
Year of Investment: January 2008
Year of Realisation: September 2010
Website: www.xlntelecom.co.uk
XLN is a leading telecoms solution provider based in Vauxhall, London. It supplies fixed line and broadband services and had over 120,000 customers in the SME sector at the time of our exit. During the period of our investment, the company increased profitability by over 250%. This was achieved by a combination of organic growth via increased customer numbers, significant operational improvements and launching new products such as mobile phones and IT security software. We provided additional funding in February 2009 to acquire One Bill Telecom for £11.5m, which also significantly increased XLN’s profitability. We sold the business in September 2010 resulting in a return of 4.5x our original investment with an IRR of 81%.
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