XLN undergoes MBO ahead of Yorkshire move
Fast-growing telecoms business XLN, which last month announced it would be creating 300 jobs at a new Sheffield base, has undergone a management buy-out.
Private equity firm ECI Partners sold its stake to the management team four years after acquiring it from Palatine Private Equity, then known as Zeus Private Equity. The deal yielded a 3x return and was backed by GSO Capital Partners.
In September it was announced that London-based XLN had acquired a a 14,000 sq ft space at One North Bank in Sheffield city centre. An investment of £40m will be spread over five years.
Under the terms of the MBO, John McKay, former CEO of Travis Perkins and Brakes, has been appointed as XLN's new chairman, taking over from John Donaldson who will remain on the board as a non-executive director.
Christian Nellemann, founder and CEO of XLN, said: “I would like to thank Tom and his team at ECI for the significant value that they added to help XLN become the leading supplier of services to small businesses.
“The backing of GSO, a blue chip investor, is a strong endorsement of our entrepreneurial approach, our high quality management team and the opportunities for acquisitive and organic growth that we have.”