Debitel

Investment creates Germany’s leading distributer of mobile phones

Debitel to serve 14 million customers and become the leading distributer of mobile phones in Germany, with a retail network of more than 6,000 sites in Germany alone. The company’s private equity backer Permira facilitated the transformation of the company, helping it to overcome a number of major challenges.

Permira acquired Debitel at a time when it was coming out of a period of uncertainty, had many loss-making divisions and unstable relationships with its partners. Permira immediately refocused the business on re-establishing reliable long-term partnerships with its mobile network operators as well as large retailers. A strong regional focus was also placed on the German core market with the sale of subsidiaries, helping to significantly reduce debt in the business. At the same time, the company improved its business model in Germany and broadened its products.

The company bought other businesses which allowed it to reduce significantly its dependence on external distribution channels. In 2007, Debitel acquired Talkline, which gave Debitel market leadership, in mobile phone services in Germany, ahead of Vodafone and T-Mobile. The full integration of Debitel’s major acquisitions is estimated to deliver €100 million of savings.

Permira; Germany; TMT; exited