TDC sells IT and data centre unit to private equity fund
Danish operator TDC has sold its IT outsourcing subsidiary TDC Hosting to a small private equity investor for an undisclosed price.
The purchaser is Copenhagen-based fund Maj Invest Equity, whose latest annual report says it had assets worth about $85 million.
Maj Invest Equity will take over all 300 employees and other activities related to customers, suppliers and partnerships in TDC Hosting, said the companies, adding: “The parties have agreed that the acquisition price will not be disclosed.”
The move is the latest in a series of disposals by TDC. Last year the company sold its Swedish operation to Tele2 for €311 million and was reported to have rejected a takeover offer from US private equity firm Apollo Global Management. Nearly three years ago it sold its operations in Finland to DNA of €124 million. Now TDC operates in just two markets, Denmark and Norway.
Marina Lønning, senior executive vice president of TDC Business, said: “At TDC Business, we want to focus on our core business – operator and integrator solutions – and we have therefore decided to sell the company. In our view, through divesting the company we have created more value for TDC Group than we would have done through our continued ownership of TDC Hosting.”
Allan Jakobsen, CEO of TDC Hosting, said: “We look forward to working with our new owner and look forward to continuing to serve our customers and partners with cloud-based IT outsourcing services.”
According to TDC Hosting’s website, the unit has grown from 50 employees in 2004 to more than 300 today, with annual sales of around $70 million. The company is headquartered near Aarhus and has data centres in the Danish regions of Jutland and Zealand.
Lønning said: “TDC Hosting already operates as an independent company, which in partnership with TDC Business provides services to a wide range of Danish enterprises. TDC Business and TDC Hosting will continue this cooperation, and are entering into a strategic partnership, and I thus have every confidence that we are putting our customers in safe hands with Maj Invest Equity as the new owner of TDC Hosting.”
The companies said that the transaction is conditional on approval by the Danish competition authorities and is expected to be completed in the coming months.