Company Description

In 2006, KKR & Sequoia completed the carve-out of Aricent from Flextronics, previously Hughes Software Systems.Aricent combines Flextronic’s former global software division, as well as its frog design unit. It seeks to address the growing demand for focused communications domain expertise, innovation and technology services.

Aricent is a global leader in end-to-end product and service innovation, known for enabling top-line growth through a defined process that spans from ideation to realization. Aricent conceives and commercializes unique communications experiences for customers around the world, utilizing 8,500 consultants, designers, and engineers in 19 countries.

Aricent has two divisions: Frog Design (product innovation) and Communications Engineering (supplier to communications equipment manufacturers and service providers).

In January 2010, Delta Partners became shareholder in Aricent to support its positive momentum of engagements with leading infrastructure, application and service providers worldwide, and in the Middle East and African region in particular.

Investment Thesis

Strong historical growth rate and top-line resilience, despite the cyclical nature of the business the company operates in.

Strong double-digit anticipated growth rate.

Long-established relationships with world-renown blue chip clients.

Opportunities for further margin expansion.

Delta Partners can support Aricent in further developing its business in Africa and the Middle East.

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Company Description

Set up in 2006 by Yerevan Telecom and Norwegian investors to offer Internet and data services over its own fibre network in Yerevan (capital of Armenia) to the corporate segment

After building a leading position among the top corporations in Yerevan during 2007 and 2008, ADC’s next strategic milestone is the launch of Broadband Internet service to the residential and SME segments

In January 2009, Delta Partners became the main shareholder in ADC to support its expansion plans

In May 2009, a pilot has been successfully launched in preparation for the mass market launch of the new solution, expected for September 2009

Investment thesis

Armenia represents a significant addressable market with a high literacy rate and fast-growing GDP per capita

Internet and broadband market is still underpenetrated & competition is fragmented

ADC has already deployed an ~80Km fiber ring within Yerevan

Further building the network to the border with Georgia will facilitate regional expansion, while significantly reducing the Internet sourcing costs

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Company Description

With headquarters in Dubai and a Saudi shareholder base, VSL is the holding company of an international group of companies with main offices the Kingdom of Saudi Arabia (“KSA”) and in India. The company operates into three different business lines:

Engineering (46% revenue in 2008): VSL is a reputable player in wireless network engineering services in India, and has a very strong position in network engineering services and cathodic protection in KSA.

Consumer electronics (38% revenue in 2008): Marketing and distribution of Plantronics headsets in India and the Middle East, and of True Blue headsets (own brand) in India and in the Middle East (“True Blue”). The Company is number 1 in headset sales in value in the Middle East

Software (16% revenue in 2008): Proprietary software solutions that intercept, monitor, and archive voice and data communications in the Middle East and South Asia (“DG Vox”)

Investment thesis

Growth potential of India, 2nd largest and fastest growing mobile telecom market worldwide

Opportunity to participate in strong anticipated network rollout in India in next five years and to build a longer-term network, operation, and maintenance business

Well-positioned company to capture expected growth in Telecoms in the Middle East given its strategic interests in engineering, software, and electronics industries

Prominent and very well-connected Board of Directors

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Company Description

Founded in 1999 with headquarters in Egypt, its objective is to provide leading Technical and Telecom services and top notch Business Process Outsourcing services

The company generated US$176 million in revenues and US$28.3 million in EBITDA in 2008

Mobiserve Holding´s operations are grouped into two business lines: Mobiserve, the engineering and manufacturing arm, and First Service, the Business Outsourcing Services arm

Mobiserve, the main business line, includes the Company’s tower construction, tower maintenance, tower and shelters manufacturing (Mobifactory), and civil engineering operations. The Company’s footprint includes Egypt, Algeria, Bangladesh, Pakistan, Tunisia, and the UAE

First Service includes the printing, packaging, delivery and collection units that provide outsourcing services to telecommunications operators in Egypt and Algeria

Investment thesis

Growth potential in telecoms markets

Attractive platform for growth in MEA

Medium term quasi-guaranteed floor on revenues in the form of a commercial agreement with Orascom Telecom Holding S.A.E. (“Orascom”)

Joint investment / partnership with ADIC

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Company Description

Specialized player in the telco media & advertising value chain in Maghreb region

Business activities include advertising, outdoor displays, and production services

Recently launched pan Maghreb TV station (Nessma TV)

Investment thesis

Telecom vertical representing bigger opportunity by far in terms of clients and revenues

Specialized and high-quality creative and production services for the telecom players in MEA

Revenue diversification through geographic expansion (beyond Maghreb) and additional business lines (such as media buying)

Strong partnership with Mediaset and local partner, Mr. Tarak Ben Ammar to launch and consolidate TV business for the Maghreb and Maghreb communities abroad

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Company Description

Provider of broadband access to the residential and corporate segments, including IP-VPN, and hosted telephony services in main regions of Russia

Exclusive license to use Virgin brand to market its broadband services

Investment thesis

Broadband market still under-penetrated

Lack of infrastructure and limited capacity of existing networks

Current economic crisis hinders diversification into broadband in incumbents

Richard Branson as strong partner

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