Casey snaps up German phone firm Getmobile for €65m in latest venture

VENTURE capitalist Pierce Casey has confirmed the purchase of Getmobile, a German mobile phone company, for €65 million.

The deal has been done through Mr Casey’s Fitzwilliam Capital Plc, which launched on London’s Alternative Investment Market in July 2004.

Fitzwilliam also announced a European share placing to raise €62.3m, spread across a number of institutional investors in key locations including Paris, Zurich and Frankfurt.

Established in 1998, Getmobile sells mobile phones and bundled services through the internet, tv and mail-order. Mr Casey described the business as “the Carphone Warehouse without the shops.”

Analysts said the successful formula can be replicated across Europe.

In 2004 the group generated sales of over €51m and Earnings Before Interest and Tax of €4m.

In 2001 sales were a modest €3.8m by comparison, with little earnings.

Once the deal is finalised, Getmobile will be debt-free with cash of roughly €4m in its coffers.

Mr Casey, who is executive chairman of Fitzwilliam, said his group was originally set up to carry out acquisitions in the European services sector.

“We believe the proposed acquisition of Getmobile represents an ideal platform to create a pan-European specialist, highly cash generative, mobile phone business with an outstanding management team.”

Three of the four key executives will join the board, while the fourth will be co-opted in due course.

Over €54m has been paid out in cash to buy the business from its founders, while the balance is being satisfied through the issue of over €13.5m Fitzwilliam ordinary shares.

Following the acquisition, Fitzwilliam will change its name to Getmobile Europe Plc to reflect the changed status of the enlarged group.

The company will also apply for a listing on the IEX, the new secondary market of the Irish Stock Exchange.

Mr Casey has a good track record as a business backer with considerable experience in venture capital and direct business involvement.

He served eight years with DCC in London, which he quit in 1992 to set up Equity & Corporate Finance in London.

For a nominal investment in recruitment group Walker Hammill of £50,000 in London, he walked away with €10m after a few years.

He is estimated to be worth between €20 and €30m.