CapMan invests in Siberian Networks
CapMan Russia, a fund managed by CapMan, has invested in Siberian Networks. The company is a fast growing Internet Service Provider (ISP) operating in the Siberian Federal District (SFD) of Russia. Siberian Networks aims to further expand its operations in its primary market area with considerable growth opportunities. CapMan will support the company in achieving its targets.
Established in 2004, Siberian Networks is one of the leading Internet Service Providers operating in the Siberian Federal District of Russia. The company provides triple-play services including high-speed Internet and IPTV for both commercial and retail customers. Siberian Networks is the third largest player in Novosibirsk and the leader in Novokuznetsk. The company is expected to generate a turnover of approx. €15 million in 2011 and it currently employs approx. 660 people. Siberian Networks has more than 100,000 subscribers.
"Siberian Networks is a significant player in the telecom market of SFD. Since its foundation, the company has grown at a very fast pace and has currently approx. 20% market share in Novosibirsk. In 2007 we also expanded to Novokuznetsk, where we have today a market share of approx. 25%. We are currently providing services in Novosibirsk region, Altai and Kemerovo region and our target is to continue to grow the business across the SFD", says Oleg Kus', CEO of Siberian Networks.
"The broadband market in the SFD offers significant potential as the penetration in the area continues to be relatively low. Siberian Networks is a strong regional player in Novosibirsk and Novokuznetsk and is seeking to further expand its operations in the SFD. In co-operationwith the management, CapMan will support the company in executing its growth strategy. I am confident that Siberian Networks is very well placed to partake in the future consolidation of the market", says Maxim Popov, Investment Director at CapMan.
Following the investment, CapMan Russia fund now owns approx. 20% of the shares in Siberian Networks, while the remaining is held by the management team. CapMan Russia fund will increase its ownership to approx. 25% during the following months. CapMan Plc is a major investor in CapMan Russia fund.
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