Tuesday 14 May 2019 7:58 pm

XLN founder weighs selling controlling stake in telecoms firm

The entrepreneur who founded London-based telecoms services firm XLN is considering selling his controlling stake in the company.

Christian Nellemann, who set up the business 17 years ago, is working with bankers at Lazard on an auction process, which could value XLN at more than £250m, Sky News reported.

Read more: Revealed: The worst telecoms firms for customer service

The potential auction is expected to attract interest from strategic and financial bidders, however, Nellemann and XLN shareholder GSO Capital Partners may decide to refinance the company instead if it fails to attract bids of a high enough value.

The company is expected to engage in talks with mid-market firms as part of the process and has previously been backed by Palatine and ECI Partners.

Read more: DEBATE: Should we be concerned about Huawei building UK infrastructure?

XLN has more than 150,000 customers and employs 500 members of staff.

Other telecoms services firms that supply small business customers, including Chess Telecom, Daisy and Verastar, are expected to change hands in the next few years or have already pursued deals.