XLN, supplier of phone lines, broadband, mobile, card processing and energy, has been sold by private equity firm ECI Partners to its management team.
XLN, which is creating 300 new jobs in Yorkshire following a £40m investment, was the first investment from ECI’s ninth fund and this exit has yielded ECI a 3x return. The deal is backed by Blackstone’s credit business GSO Capital Partners.
Earlier this year, it was announced that XLN, headquartered in London, has acquired a 14,000 sq ft area at One North Bank in Sheffield city centre as a new base. The £40m investment in Sheffield will be made over the next five years.
Former CEO of Travis Perkins and of Brakes, Frank McKay has been appointed as the new chairman of XLN, taking over from the out-going chairman 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.
“I look forward to widening our crusade to help more of Britain’s Heroes of the Economy, the micro SMEs, get a better deal on business services and receive the world class customer service that they deserve.”