Debitel

At exit, debitel offered a wide range of telecommunications products and internet services to over 14m customers and was the No. 1 distribution platform for mobile phones in Germany. It was transformed from a wholesale company into a branded retailer with store numbers increasing from 80 to 500 shops, boosting organic and inorganic growth. See how debitel became the clear market leader with our backing…

Germany

Realised

Together we achieved

  • A strong position as clear market leader in the German mobile market
  • A refocusing of the business through the sale – at attractive multiples – of non-core, sub-scale subsidiaries in Denmark, France and Slovenia.
  • A successful shift from wholesale to retail
  • Growth in customer numbers from 10.2m in 2004 to 14m in 2008

This was accomplished by

  • Improving the business model in Germany by instituting higher-margin contracts with features typical of mobile virtual network operators
  • Broadening the product spectrum through the inclusion of DSL and original MNO-products
  • Acquiring ‘_dug’, the largest independent retailer of mobile, and Talkline, a bolt-on that added 3.8m new customers
  • Generating substantial operational improvements. The three waves of improvement programmes resulted in a total EBITDA contribution of €160m in 2008

www.mobilcom-debitel.de

The metrics

€842m

Transaction value

2004

Acquisition year

3.1x

ROI

2008

Exit year

Freenet

Sale to

80

Owned stores in 2004

Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon

500

Owned stores in 2008

Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon Store Icon