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ECI Partners, a mid-cap private equity group in UK has taken a majority holding in XLN Telecom, a UK provider of telecoms services for small business.

XLN provides small businesses in the UK with high quality, low-cost fixed-line, mobile and internet services. In the last year, XLN successfully acquired and integrated One Bill into its operations.

In addition to this investment, ECI will also support XLN’s ongoing business development and acquisition programme. These efforts will provide XLN with the funds that will allow it to more than double the size of the business through acquisitions.

XLN’s founder and group CEO, Christian Nellemann, will lead the company’s award winning management team.

The company attributes its success to the management team's successful development of a proprietary technology platform that allows new services to be smoothly integrated into the business.

Also, the management team has a highly focused approach to marketing, product development and customer service innovation. Boasting more than 115,000 business customers across Britain, XLN operates two non-competing brands in the market - XLN Telecom and One Bill.

Christian Nellemann, founder and Group CEO of XLN, noted that a completely fresh approach has enabled them to transform a niche and historically overlooked sector of the market.

XLN has been able to achieve this by combining best quality products with best value pricing and high quality customer service standards. Nellemann said that due to all these efforts they now have a highly profitable and scalable business that will allow rapid expansion of the range of services they deliver to the small business market.

“We are delighted that ECI will be a key part of the business's exciting next chapter given the opportunities for consolidation within our sector.”

“XLN is a superb growth business in a sector that has performed strongly during the recent downturn. It is led by a high-quality management team that has a clear vision for the future,” said Tom Wrenn, who led the deal for ECI Partners. “XLN has considerable scope to add more products and services and is in an excellent position to act as a platform for consolidation in the fragmented telecoms market. We are delighted to be backing this excellent team and to provide additional capital to continue to grow the business.”