News
Neqst new majority owner of DigitalRoute – Continued focus on rapid expansion
19 March 2010 - 13:50
Stockholm, March 19, 2010
The Swedish private equity firm Neqst becomes the new majority owner of DigitalRoute, an independent software vendor to the telecom industry, through an increase in its shareholding to 89 percent. This was achieved by acquiring Frontiers Capital’s and Tempo Capital Partners’ holdings in DigitalRoute, totaling 66 percent. Through its increased ownership, Neqst plans to continue its focus on fast and profitable growth for DigitalRoute.
DigitalRoute has expanded rapidly over the last few years and has won several important projects with its software, which helps telecom operators to charge for their services.
DigitalRoute has seen an annual revenue growth of 50 percent since 2006, which is equivalent to a more than fivefold increase in four years. At the same time, the company has generated a positive cash flow. Turnover for 2009 amounted to 118 million SEK.DigitalRoute has seen an annual revenue growth of 50 percent since 2006, which is equivalent to a more than fivefold increase in four years. At the same time, the company has generated a positive cash flow. Turnover for 2009 amounted to 118 million SEK.
“We at DigitalRoute and Neqst share the same view – that we will prioritize global growth in order to take advantage of our software’s technical leadership,” says Jan Karlsson, CEO of DigitalRoute
Today, MediationZone® is deployed at 170 customers in 78 countries, with 50 new customers added in 2009. DigitalRoute has more than 100 employees, of which 75 are based in Stockholm and Gothenburg.
“DigitalRoute directly originates from our Swedish telecoms tradition. We believe that the company can maintain its rapid pace of expansion for many years ahead, since our software has such a strong advantage in terms of technology and cost-efficiency. This has become more and more obvious to customers in the telecommunications industry around the world,” says Erik Fröberg, partner at Neqst and chairman of the board of DigitalRoute.
For more information, please contact:
Erik Fröberg, partner at Neqst, telephone +46 708 837788
