The Carlyle Group Acquires Kingston Inmedia from Kingston Communications for £34 Million in all Cash Deal

London – Global private equity firm The Carlyle Group today acquired Kingston Inmedia, the satellite service provider from Kingston Communications (Hull) plc, the UK alternative carrier, in an all-cash deal of £34 million. Carlyle Europe Venture Partners fund (CEVP) conducted the transaction and Barclays Leveraged Finance provided the debt financing.

Kingston Inmedia delivers enterprise, broadcast and internet solutions to business customers using satellite-based technologies. 2003 revenues were £33.4 million with EBITDA of £5.7 million. Kingston Inmedia has 165 employees.

“Kingston Inmedia is led by an excellent and committed management supported by a high quality asset base, strong customer service and a competitive offering. We believe the company will flourish as a private company and we look forward to working with the team,” said Bruno Mourgue d'Algue, Associate Director, The Carlyle Group.

Nick Thompson, CEO of Kingston Inmedia, commented, “This is a great opportunity for Kingston Inmedia. Carlyle’s significant international interests will enable us to capitalise on a number of expansion opportunities that were too divergent for our previous owner. With the strong support of Carlyle we hope to grow the company significantly over the next years.”

The company will continue to trade under the name of Kingston Inmedia in the immediate future.

Malcolm Fallen, CEO of Kingston Communications said, “I am confident that Kingston Inmedia will thrive under its new ownership and wish the dedicated, talented team who work in the business every success for the future.”

“This deal fits well with our expertise in the telecoms sector at Carlyle and the CEVP strategy of investing in later stage technology companies. Kingston Inmedia’s robust business fundamentals aligned with positive signs of growth in the market make it an attractive investment for us,” said David FitzGerald, Managing Director and co-head of Carlyle Europe Venture Partners.

This investment is the second in 2004 for Carlyle Europe Venture Partners (CEVP). An investment in Fennel Technologies AG based in Germany was announced in January. CEVP is a €553 million fund that focuses on investing in later-stage companies in the technology sector, from expansion capital to small buyouts.

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