CVC Capital Partners Acquires Sunrise Communications for CHF3,300 Million

CVC Capital Partners, a leading UK-based private equity firm, has entered into a definitive agreement to acquire Sunrise Communications S.A., a Switzerland-based provider of mobile, fixed network, and internet solutions, from TDC A/S for an enterprise value of CHF3,300 million. This acquisition enables CVC to expand its activities in the telecommunications sector, while allowing Sunrise to pursue its challenger strategy on the Swiss market. Deutsche Bank and BNP Paribas are acting as financial advisors to CVC, while Morgan Stanley and UBS are acting as financial advisors to TDC. The transaction is expected to close in the fourth quarter of 2010.

Key Takeaways:

• CVC Capital Partners has acquired Sunrise Communications S.A. for an enterprise value of CHF3,300 million ($3,273 million) from TDC A/S.
• The transaction enables CVC to expand its activities in the telecommunications sector and allows Sunrise to pursue its challenger strategy on the Swiss market.
• Deutsche Bank and BNP Paribas are acting as financial advisors to CVC, while Morgan Stanley and UBS are acting as financial advisors to TDC.
• The acquisition is expected to close in the fourth quarter of 2010.
• This acquisition marks a significant move by CVC into the European telecommunications market.
• Sunrise Communications S.A. is a Switzerland-based provider of mobile, fixed network, and internet solutions.
• TDC A/S is a Denmark-based provider of communications solutions and services.

Statistics:

• Enterprise value of the acquisition: CHF3,300 million ($3,273 million)
• Share price of DB (Deutsche Bank) as of 09-13-2010: $67.71
• Share price of MS (Morgan Stanley) as of 09-13-2010: $27.66 (indicating an uptrend)
• Date of deal announcement: September 17, 2010

Sources:

• Datamonitor Financial Deals Tracker via COMTEX
• Comtex SmarTrend Alert (for DB and MS share prices)