Baltic, Estonia, Financial Services, Funds, Good for Business, Internet, Lithuania, Mergers and take-overs, Technology, Telecomunications

The investment consortium led by Livonia Partners will acquire a substantial minority shareholding in Cgates in order to support the company's growth in network and technology upgrades. The transaction is awaiting regulatory approval, Livonia Partners said.

"As a leading business in the growing Lithuanian market, Cgates has demonstrated its capability to grow both organically and through takeovers," Rain Lohmus, founding partner with Livonia, said.

With approximately 300 employees and annual sales of 19.5 mln euros, Cgates is the second biggest cable network operator in Lithuania. The company provides cable, digital television, telephony and fiber optic network services to more than 270,000 customers in 18 towns and cities.

The current owners of the Vilnius-based company have previously set up the Starman company in Estonia, which was acquired by the Finnish telecom group Elisa at the beginning of this year.