Decision Nº M/06/048 from Competition and Consumer Protection Commission, 2006-08-24

• Court: Competition and Consumer Protection Commission
• Decision Date: 24 August 2006
• Decision Number: M/06/048
• Date: 24 August 2006
• Parties: Somera,Warburg Pincus

Merger Notification M/06/048 – Warburg Pincus / Somera

DETERMINATION OF MERGER NOTIFICATION M/06/048 –

WARBURG PINCUS / SOMERA

Section 21 of the Competition Act 2002

Proposed acquisition by Warburg Pincus LLC of Somera

Communications Inc

Dated 24th August 2006

Introduction

1. On 24th July 2006 the Competition Authority, in accordance with

Section 18 (1) of the Competition Act, 2002 (“the Act”) was notified,

on a mandatory basis, of a proposal whereby Warburg Pincus LLC

(“Warburg Pincus”), through Telmar Network Technology, Inc.

(“Telmar”) would acquire Somera Communications Inc. (“Somera”).

The Undertakings Involved

2. Warburg Pincus is a US-based global private equity firm that controls a

number of investment funds that have direct and indirect participation

in numerous operating companies worldwide. One of the Warburg

Pincus affiliated investments funds - Warburg Pincus Private Equity IX

LP – owns a controlling interest in Telmar. Telmar and its affiliate

companies (“Telmar Group”) provides telecoms equipment and

services to wireline and wireless communication providers. Its range

of products and services include used equipment brokerage, new

equipment resale, extended-life services, wireless services and repair

and other outsourced services. In the State the Telmar Group’s

activities are limited to the sale of refurbished telecommunications

equipment. In 2005 Warburg Pincus had a worldwide turnover of c.

€[10-20] billion and a turnover in Ireland of c. €[50-100] million.

Telmar Group’s sales in the State in 2005 were c. €[<500,000] and it

has one customer.

3. Somera is based in the United States and is engaged in the supply of

infrastructure equipment lifecycle management services to wireline and

wireless telecommunications carriers to extend and manage the life of

their mature networks. In the State its activities are limited to

equipment brokerage. Equipment brokerage involves offering new and

re-used or refurbished telecommunications equipment to

telecommunications carriers. Somera has two customers in the State

and sales of c. €[<500,000].

Analysis

4. The activities of the undertakings involved overlap in the State in

relation to the sale of refurbished telecommunications equipment.

Given the minimal revenues in the State, the lack of customer concern