Fixed-line, mobile and internet provider XLN Telecom has been acquired from Zeus Private Equity by ECI Partners.

Fixed-line, mobile and internet provider XLN Telecom has been acquired from Zeus Private Equity by ECI Partners.

Zeus backed a management buy-out of the company in 2008, investing £6.63 million. It reports that it achieved a multiple of 4.5 times its original investment from the sale to ECI. The enterprise value of XLN is approximately £80 million.

Since 2007, XLN’s revenues have grown from £27 million to £54 million and in the past year it acquired OneBill Telecom, with additional investment from Zeus.

Nick Jones, a partner at Clearwater Corporate Finance, which advised XLN, comments, ‘Taking into account continued consolidation in the UK and European telecoms sector, with larger, cash-rich companies picking up smaller rivals, this investment puts XLN in a very strong position to further build on its acquisition of OneBill in 2009.’

Chief executive Christian Nellemann remains at the helm of XLN, which focuses on serving small businesses in the UK.