Italtel is the premier vendor of fixed line telecoms equipment in Italy.

It is also one of the world's leading providers of switches, central office equipment, access devices, telecom operating systems and support software and network integration services.

In 1999, Italtel's parent company, Telecom Italia, decided to divest the business. At the same time, however, Telecom Italia also wanted to retain a stake in Italtel because of its dependency on the company's technological expertise.

Cisco, who had selected Italtel as its partner to develop a softswitch and media gateway controller for convergent networks, presented itself as an acquirer but did not want to purchase Italtel outright. The solution that met all interests was a joint venture, combining private equity funding with co-investment from Cisco as a strong corporate partner, acquiring Italtel in a transaction that valued the business at €900m. Transitioning the company into an efficient, international operation has involved an extensive review of its technological, operational and financial operations, in which we have played a hands-on role. The result has been not only operational streamlining but also substantial investment in new technologies and the development of new products and markets. As a result, the financial performance of the company has improved significantly since the investment and Italtel holds a leading position in large-scale convergent networking technologies.