CDC Innovation made its initial investment in Outremer Telecom in October 1998 with the objective to build a true alternative telecom operator covering the French overseas territories. The investment took place soon after the company had received its telecom licences. CDC Innovation later increased its stake in the company’s capital by purchasing additional shares from existing shareholders.

The investment thesis was to transform the stream of revenues from voice traffic to data, while gaining market shares in both markets. Significant investments were made in broadening the product offering, upgrading the network and accelerating growth.

In the following 6 years, Outremer Telecom became the single most successful alternative telecom operator to France Telecom in the French overseas with about 70 M€ in annual revenues.

In December 2004, Outremer Telecom was acquired by Apax Partners through a leveraged buy-out. This successful exit generated a return in excess of 3 times the invested capital for CDC Innovation.

This investment illustrates CDC Innovation’s ability to well understand the challenges and transformation impacting the telecom industry.

Euronext Paris (Eurolist B): OMT