CAPITAL FOR INVESTMENT IN CENTRAL AND EASTERN EUROPE

00:00:00 07.01.2015
    China -CEE Fund Invests in Telecommunications Sector


    The China-Central and Eastern Europe Investment Co-Operation Fund, advised by CEE Equity Partners, is finalizing its plans to acquire a controlling stake in Electronic Control Systems S.A. (ECS) – a dynamically developing engineering company providing services for the telecommunications sector in Poland and several other foreign markets. The fund’s investment is part of a strategy for developing the infrastructure business market in the Central and Eastern European region by supporting talented and ambitious management teams.

     

    ECS is an engineering company providing a wide range of diversified services for the mobile network sector. After only a few years of activity, ECS has developed a successful portfolio and created a team of 200 experts providing services throughout Poland. Recently, the company has expanded abroad, delivering advanced projects in Germany, Denmark and Slovakia. “From our point of view, this is a small yet significant investment confirming CEE Equity Partners’ interest and their will to invest in the broadly defined telecommunications infrastructure sector,” says Rafał Andrzejewski, investment director, CEE Equity Partners.

     

    ECS is a supplier of turnkey services for mobile operators, including: construction works, acquiring locations and permits, building networks and installations, optimising RANs, networks tests, electromagnetic field measurements, and traffic maintenance and management. The company’s list clients includes mobile operators as well as large international businesses providing operators with solutions, technologies and equipment.

     

    The fund’s main aim is to support the company in the realisation of large engineering contracts and the concept to build its own telecommunications infrastructure which would later be shared with operators based on a long-term lease model. This would allow operators to focus on their primary sales activities and client-side contact while simultaneously reducing capital expenditures. Additional profit can be gained due to the fact that the proposed telecommunications infrastructure may be shared by many operators leading to a further optimisation of costs. ECS is one of the best positioned companies in Poland to launch such a solution.

     

    “We are very pleased to be able to cooperate with ECS and support its ambitious development strategy. The company’s team of managers was of key importance for us as it is a very active and innovative group that has been consistently building their business and competences as well as developing contacts with key clients. The consolidation of this unique experience on the Polish market and the fund’s capital should enable the construction of a mobile communications infrastructure for lease in Poland. This model has been working successfully in Western Europe, both Americas and even in Africa. With such a well-established model showing broad success, it would be a shame if it was not developed in such a prospective market like Poland as it provides financial profits for operators and as a result, better coverage and greater satisfaction for clients and end-users,” says Janusz Skrzypkowski, Investment Director, CEE Equity Partners, responsible for the investment project with ECS S.A.

     

    The fund is currently waiting for the Office of Competition and Consumer Protection’s (UOKiK) permit and plans to acquire the controlling share of ECS S.A. this February. No financial details of the transaction have been disclosed.

     

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    About ECS

    Electronic Control System is one of the leading engineering companies in Poland providing services for telecommunications sector. The company provides turnkey services for mobile operators (construction works, acquisition of locations and securing permits, building networks and installations, optimisation of RANs, networks tests, electromagnetic field measurements and traffic maintenance and management). The company was ranked as one of the fastest developing businesses in the “Gazele Biznesu” (Business Gazelles) ranking and won Forbes Diamonds 2013 award.

     

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