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CapMan Growth and Mandatum to accelerate Sofigate’s growth

Capman

Sofigate to boost its turnover towards EUR 500 million

Sofigate, the business technology transformation company, will be boosted by two private equity investors when CapMan Growth and Mandatum Private Equity become minority shareholders in the company. With their decision, the new owners are showing trust in a fast-growing digital transformation expert that combines program leadership, continuous management of business change and modern technology platforms. Sofigate aims for an annual turnover of EUR 500 million by 2025.

“CapMan and Mandatum bring financial and capital market expertise to the company, which will enable us to accelerate our growth. Company acquisitions are part of the strategy, and private equity investors ensure that financing is available when needed,” says Sofigate CEO Sami Karkkila.

Sofigate has grown rapidly in recent years. In five years, the company increased its turnover fivefold to the current level of EUR 100 million. Maintaining a similar growth rate requires both rapid organic growth and acquisitions.

Business technology a hot topic

The business technology sector is predicted to grow rapidly in the Nordic countries as well. The Covid-19 pandemic has accelerated digitalisation and spurred companies to invest even more in their digital processes.

“As a strategic investor, we see great potential in the development of Sofigate’s operations on the path the company has chosen. Sofigate operates in strong growth markets, and these are further intensified by the transformation brought about by digitalisation. As private equity investors, we bring considerable added value by significantly accelerating the implementation of Sofigate’s internationalisation and acquisition strategies,” says CapMan Growth Managing Partner Juha Mikkola of the company’s future.

“As technology takes centre stage in business operations across industries, the winners will be companies that understand the relationships between technology and strategy, business operations and product development. In this digitalisation-driven market, Sofigate has a strong position in Finland and significant growth potential in other Nordic countries. As a strategic investor and in addition to our financial investment, we provide Sofigate with access to our growth strategy and acquisition expertise,” says Alexander Antas, head of Mandatum Private Equity.

Strong ownership by staff also

In addition to CapMan and Mandatum, Sofigate is owned by LähiTapiola, the company’s founders, and a significant number of its personnel. Institutional investors now own a little less than one-fifth of Sofigate in total. Even after the transaction, Sofigate is to a large extent owned by its employees.

“The investments will also strengthen the composition of the board, which will increase the company’s ability to develop its operations. We are ready to implement the chosen growth strategy both operationally and at the board level, and we will be able to move very quickly if necessary,” says Karkkila.

Sofigate was founded in 2003 as an IT management service provider, but has gradually grown into the leading business technology transformation expert in the Nordic countries. A key driver of that growth has been the digital revolution in business, which has forced customers to make their traditional operations technology-driven.

“We offer customers technological expertise and transformation management in one package,” Karkkila says. “We are a pioneer in combining the best technologies, people and management models.”

For more information, please contact:

Juha Mikkola, Managing Partner, CapMan Growth
juha.mikkola[a]capman.com
Tel. +358 50 590 0522

Sami Karkkila, CEO, Sofigate
sami.karkkila[a]sofigate.com
Tel. +358 400 805 446

Sofigate is a business technology transformation company with approximately 600 employees in Finland, Sweden and Denmark. Sofigate helps its customers develop the interplay between business and technology: to design, build and implement transformations and business-friendly technology solutions. The company utilizes the Business Technology Standard and the world’s leading technology platforms such as ServiceNow, Salesforce, SAP, Oracle and Google Cloud.

CapMan Growth is a leading Finnish growth investor. The team’s second MEUR 97 fund, CapMan Growth II established in 2020, makes significant minority investments in growth stage companies with ambitious growth and expansion goals. CapMan is part of CapMan Group, a leading Nordic private asset expert with an active approach to value creation. As one of the Nordic private equity pioneers, we have developed hundreds of companies and real estate assets and created substantial value in these businesses and assets over the past 30 years. With close to €4 billion in assets under management, we have a broad presence in the unlisted market through our local and specialised teams. 

Mandatum Private Equity (MPE) is a Finnish growth oriented investor with ca. 160m EUR of AUM. MPE focuses on significant minority investments in Finnish and Nordic privately held companies with proven business models and strong growth ambitions. Mandatum Private Equity is part of Mandatum Asset Management (MAM), a new asset management company that was formed by combining Sampo Group’s proprietary balance sheet, client assets, and investment operations from Sampo Plc and Mandatum Life. MAM leverages Sampo’s investment heritage as one of the most successful institutional investors in the Nordic region. MAM manages ca. 24bn EUR and employs ca. 100 investment professionals. MAM belongs to the Sampo Group.

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GREAT DEALS e-Commerce juggernaut receives US$30 million investment from Fast Group, CVC Capital, and Navegar

CVC Capital Partners

The Philippines’ #1 e-commerce enabler Great Deals e-commerce Corporation raised US$ 30M (P 1.4B) capital in its Series B funding round.

The said funding round was led by Fast Group, a leading logistics firm in the Philippines with the support from CVC Capital Partners, one of the world’s largest global private equity firm with US$ 118B in assets under management (AUM). Navegar, a private equity firm that infused US$ 12M Series A fund into Great Deals, also contributed to this funding round.  The transaction was advised by Rocket Equities.

Steve Sy, Founder & CEO of Great Deals, William Chiongbian II, Group President and CEO of Fast Group, and Javier Infante, Managing Partner of Navegar, along with their management teams and advisors, participated in the signing of definitive agreements.

“The Fast Group sees a lot of synergies with Great Deals in building capability. We are privileged to contribute to the growth of Philippine e-commerce, as it relies heavily on a strong supply chain backbone,” Chiongbian said.

“We are thrilled to be teaming up with Steve and Great Deals, the country’s largest e-Commerce enabler. We envision strategic collaborations between Great Deal’s high-growth e-Commerce solutions and Fast’s leading position in Philippine logistics. This partnership also marks Fast’s first M&A transaction since CVC’s investment less than 6 months ago” said Brice Cu, Managing Director and Head of the Philippines, for CVC Capital Partners.

Great Deals will deploy this growth capital in tech development and the construction of an automated state-of-the-art fulfillment center — both critical to meet the growing demand in e-commerce and to level-up the game in customer experience.

“We love a good challenge.  We recognize that Philippine logistics is by far the toughest across the ASEAN region and remains to impede our e-Commerce penetration outside GMA.  With this funding and strategic support from our new investors, this opens new opportunities to drive forward Instant Commerce – delivery under one hour, wherever you are. We can reach and serve more Filipinos faster and safer. That is the Next Big Thing that can boost further the digital economy in our country,” Sy said.

Established in 2014, Sy founded Great Deals after spending many years as an entrepreneur in the retail and e-commerce sectors. He identified a stark need to enable entrepreneurs like himself to succeed in this new space.

With Sy’s bootstrapping style, Great Deals grew into a multi billion-peso company, posting four-fold growth in 2020. Its enviable list of global brand partners includes Abbott, L’Oréal, Unilever, Nestle, Samsonite, GSK, Bayer, and Fila, among others.

Great Deals, offers end-to-end business solutions ranging from digital marketing, content creation, storefront management, web design, business analytics and customer service to warehousing and peak-scaling fulfillment.

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Argentum Announces Two Promotions in Connection with its New Fund

Argentum

Argentum, a growth equity firm that partners with bootstrap and entrepreneurial owners to build industry-leading B2B software, technology-enabled, and business services companies, is pleased to announce two promotions in connection with the recent launch of its new fund, Argentum Capital Partners IV, L.P. (“ACP IV”).

The Firm congratulates Sohum Doshi on his promotion to Vice President and Jean Parker on her promotion to Director, Business Development.

Commenting on the promotions, Daniel Raynor, co-Founder and Managing Partner, said, “Sohum and Jean have been important contributors to the firm’s success, especially in helping us to get off to such a fast start with our new fund and playing key roles in enabling ACP IV to close its first few investments.”

Walter Barandiaran, co-Founder and Managing Partner, commented, “We are excited to have Sohum and Jean emerge as valuable members of our team and look forward to their taking on increasing levels of responsibility. We believe they will play important future roles as Argentum continues to grow and successfully executes its investment strategy of supporting rapidly growing, bootstrapped businesses.”

 

Sohum Doshi
Vice President
A member of the team since 2018, Sohum has leveraged his prior experiences as a consultant at Oliver Wyman and at a growing tech company to make impactful contributions to Argentum. He has proactively sourced and evaluated new investment opportunities and assisted portfolio companies in executing their business strategies. Sohum played a key role in originating and closing ACP IV’s recent investment in MessageGears and works closely with existing portfolio companies AdhereTech, EmpowerMX, Mediant and TPS.

Jean Parker
Director, Business Development
With a background in sales and trading at Citi and a successful track-record across strategic sales and technology from her prior roles at Preqin and Axial, Jean has leveraged her diverse experience to make several important contributions to Argentum’s business development efforts since joining the firm in 2019. She originated ACP IV’s recent investments in SmartCommerce, Impact Analytics and MessageGears and continues to build a robust pipeline of investment opportunities.

 

About Argentum
Argentum is a New York-based growth equity firm that partners with entrepreneurial owners to build industry-leading B2B software, technology-enabled and business services companies. The firm invests in companies with revenues of $5 million to $25 million, providing capital to accelerate growth, fund acquisitions and / or generate shareholder liquidity. Over its 30-year history, Argentum has invested in 90 companies and supported more than 200 add-on acquisitions. Argentum fills the growing gap between early-stage venture capital investors and later stage growth equity firms by targeting bootstrapped companies seeking $5 million to $15 million of equity capital.

Categories: People

ReaQta Closes Series-A Round to Expand Commercial Operations

Fortino Capital
  • Founded by an elite team of attack and defense cyber security experts, ReaQta’s Autonomous Detection​ & Response platform provides advanced endpoint security and operational resilience for the mid-market.
  • Moving away from the traditional cyber security model of blocking known and predictable threats, ReaQta leverages deep learning and dynamic behavioral analysis to map the status quo, identify abnormal behavior and protect against new attack techniques.
  • New funding from Alpha Intelligence Capital, Fortino Capital, InvestLink and Integra Partners will be used to expand commercial operations.

 

Amsterdam, The Netherlands – May 19, 2021 – ReaQta, a leading provider of advanced cyber security solutions for the autonomous detection and response of cyber threats, has closed an over-subscribed Series A funding round led by Alpha Intelligence Capital with participation from Fortino Capital, InvestLink and Integra Partners. ReaQta will invest the funding to expand its commercial operations and footprint, particularly across Europe and Asia.

ReaQta’s active defense intelligence platform aims to solve for the increasing number of businesses falling victim to malicious activities from cyber criminals and nation states actors. While traditional protection methods fight known threats and stand vulnerable to sophisticated attack techniques, ReaQta’s revolutionary platform stops known and unknown threats in real-time. Through deep learning, the platform constantly improves on defining normal behavior tailored to each business per endpoint, allowing it to block any abnormal behavior.

Additionally, traditional solutions require internal or external cybersecurity teams to act on any flagged threats. ReaQta’s platform not only detects threats, but also allows for a seamless and automated threat response in real-time. ReaQta was recently named a 2020 Cool Vendor by Gartner in Network and Endpoint Security for this unique approach in tackling cyber threats of all forms.

“We are extremely proud to partner with AIC, a deep-technology AI investor, and InvestLink, cyber-security veterans and founders of Securelink as well as Fortino Capital a B2B SaaS specialist with operating partner. With their support, we aim to accelerate growth and evolve from a promising scale-up to a leader in the cyber security space.” Alberto Pelliccione, Co-Founder and CEO of ReaQta, said. “The funding will mainly be used to expand our sales, marketing and support teams internationally. Reaching this milestone has been made possible thanks to our amazing team.”

“The increased interconnectivity of endpoints and data and the rise of malicious activities from threat actors over the last few years has created a substantial threat to business continuity,” Frank Staut, Managing Partner at InvestLink and  Co-Founder/CTO at Securelink, a leading enterprise cybersecurity provider in Europe which was acquired by Orange said. “We have analyzed this segment for several years and are convinced that ReaQta provides an industry-leading solution. The maturity and reference projects of the company’s Autonomous Detection & Response platform, in combination with a stellar team, sets them apart.”

Antoine Blondeau, Founder & Managing Partner of AIC, said “We believe in the disruptive potential of ReaQta’s threat-hunting solution. ReaQta is one of the first to combine deep learning with behavioral analytics to perform cyber threat-hunting, with an unparalleled degree of automation. As organizations move to remote work streams, increasing their number of endpoints, ReaQta is well positioned to capture the market’s explosive growth.”

 

About ReaQta

ReaQta is Europe’s top-tiered AI Autonomous Detection & Response platform, built by an elite group of cyber security experts and AI/ML researchers with extensive backgrounds in government intelligence operations. Built with advanced automated threat-hunting features, ReaQta allows organizations to eliminate the most advanced threats in real-time. As experts in AI and behavioral analysis, ReaQta’s proprietary dual-AI engines provide organizations across all industries with autonomous, real-time and fully customizable endpoint security, minus the complexity. As a result of unprecedented levels of automation coupled with intuitive design, ReaQta’s customers and partners benefit from performance improvements and are now able to manage and secure more endpoints without the need for highly skilled staff. For more information, visit https://reaqta.com

 

About AIC

Alpha Intelligence Capital (AIC) is a global venture capital fund investing exclusively in disruptive Artificial Intelligence/Machine Learning (AI/ML) technology-based companies. AIC has approximately $185 million under its main fund with access to large pools of co-investment capital. AIC’s teams operate out of San Francisco, Hong Kong and Paris. AIC has currently invested in over 19 companies globally, in the US, Israel, Europe and China. For more information, visit https://aicapital.ai

 

About Fortino

Fortino Capital is a pure play European B2B SaaS investor operating out of Amsterdam and Antwerp. Fortino has backed over 70 founders to date and holds c.€430m in AuM across 3 funds, of which 2 are early-stage VC and one PE / growth equity.

 

Media contacts

Elizabeth Lee
Communications Manager
e.lee@reaqta.com

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Josefine Uppling appointed new Vice President Communication & Sustainability at Ratos

Ratos

Ratos has appointed Josefine Uppling as Vice President Communication & Sustainability. She will join Ratos’s management team and assume the position on 1 September 2021 at the latest.

Josefine Uppling formerly worked as Head of Press and Group Press Office at Swedbank AB. Her most recent position was as Head of Group Public Affairs, also at Swedbank AB, and she was previously Head of Communication and Analysis at Mäklarsamfundet. Prior to this, she worked for many years with strategic communication and public affairs in various positions as well as running her own company.

“I am very pleased that we have managed to recruit someone with such broad experience of communication and social relations. Communication and sustainability are key components for us as we raise the level of ambition in our business group. I look forward to having a new member of the management team who can further strengthen our business by taking our comprehensive approach to communication and sustainability to the next level,” says Jonas Wiström, CEO of Ratos.

“I am delighted to become part of the team. Ratos and the business group are in an exciting phase, with new acquisitions forming part of the agenda. I am convinced that new technology and innovation offer many solutions for the problems of tomorrow, particularly in the field of sustainability. From this perspective, Ratos is at the forefront and paving the way with its portfolio companies,” says Josefine Uppling.

 

For further information:
Jonas Wiström, President and CEO
+46 8 700 17 00

Josefine Uppling, incoming Vice President Communication & Sustainability
+46 761 14 54 21

About Ratos:
Ratos is a business group consisting of 12 companies divided into three business areas: Construction & Services, Consumer and Industry. In total 2020, the companies have approximately SEK 34 billion in sales. Our business concept is to develop companies headquartered in the Nordics that are or can become market leaders. We enable independent companies to excel by being part of something larger. People, leadership, culture and values are key focus areas for Ratos. Everything we do is based on Ratos’s core values: Simplicity, Speed in Execution and It’s All About People.

Categories: People

Accounting SaaS Regate.io announces 7M€ funding round

360 Capital

Paris based SaaS platform Regate.io raises 7M€ round to facilitate and automate accounting workflows for CFOs and accountants, including invoicing, expense management and payments. 360 Capital leads the round, alongside Financière Saint James and renowned BA including Alexis Bonillo, Pierre-François Thaler, Antoine Bello and Constantin Wolfrom.

Founded in 2019 by Alexis Renard and Laura Pallier, Regate.io aims at simplifying accounting processes by providing able to integrate and automate enterprise accounting tools.

With this round, Regate.io will accelerate its product development and deployment, as well as focus on building its team.

We are delighted to support the fantastic duo composed of Alexis and Laura in this new entrepreneurial adventure, bringing together the experience of a successful serial entrepreneur and a real understanding of the market needs.

Emanuele Levi, Partner at 360 Capital

 

Read the full press release here.

 

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AEVIS VICTORIA SA acquires the remaining 80% of the share capital of Klinik Pyramide am See AG and integrates it into its subsidiary Swiss Medical Network

May 18, 2021 | 6:54 pm CEST
 

Press release

Fribourg, 18 May 2021

AEVIS VICTORIA SA acquires the remaining 80% of the share capital of Klinik Pyramide am See AG and integrates it into its subsidiary Swiss Medical Network

AEVIS VICTORIA SA (AEVIS) today signed an agreement with the physician shareholders of Klinik Pyramide am See AG to acquire the remaining share capital of the Zurich-based private hospital. This participation will be integrated into its subsidiary Swiss Medical Network SA, which already held a 20% stake in Klinik Pyramide am See AG since 2011. With around 120 employees and 80 physicians, Pyramid Clinic achieved revenues of CHF 18 million and an EBITDAR of CHF 3.6 million in 2020. The transaction will be carried out primarily through a share exchange and Klinik Pyramide am See AG will be consolidated into AEVIS from 1 July 2021.

For further information:
AEVIS VICTORIA SA Media and Investor Relations: c/o Dynamics Group, Zurich
Philippe R. Blangey, prb@dynamicsgroup.ch, +41 (0) 43 268 32 35 or +41 (0) 79 785 46 32
Séverine Van der Schueren, svanderschueren@aevis.com, +41 (0) 79 635 04 10

AEVIS VICTORIA SA – Investing for a better life
AEVIS VICTORIA SA invests in healthcare, hospitality & lifestyle and infrastructure. AEVIS′s main shareholdings are Swiss Medical Network SA (90%), the only Swiss private network of hospitals present in the country’s three main language regions, Victoria-Jungfrau AG, a luxury hotel group managing nine luxury hotels in Switzerland, Infracore SA (30%, directly and indirectly), a real estate company dedicated to healthcare-related infrastructure, a hospitality real estate division, Medgate (40%), the leading telemedicine provider in Switzerland, and NESCENS SA, a brand dedicated to better aging. AEVIS is listed on the Swiss Reporting Standard of the SIX Swiss Exchange (AEVS.SW). www.aevis.com.

 

End of ad hoc announcement

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Astorg and Bridgepoint acquire financial software company Fenergo

Bridgepoint

Dublin, 18th May 2021 – Astorg and Bridgepoint are pleased to announce that they have signed a definitive agreement alongside Fenergo’s management team to acquire Fenergo, the leading provider of Know-Your-Customer (KYC) and Client Lifecycle Management (CLM) software solutions for financial institutions, from Insight Partners. The acquisition follows a period of strong expansion for Fenergo and will drive investment in the firm’s SaaS strategy, product line development and support an expanding team through the next phase of growth.

Established in 2009, Fenergo’s award winning SaaS platform provides solutions to the world’s largest and most complex financial institutions, helping to fight financial crime and to enhance customer journeys while being compliant every step of the way. Fenergo currently helps top financial institutions including ICBC Standard Bank, Santander, Mizuho, ABN AMRO and BNP Paribas to digitally transform their end-to-end client lifecycle processes. Fenergo’s API-first ecosystem of channels, systems and data providers enables financial institutions to offer a truly frictionless customer experience.

The company operates in a specialised part of the highly regulated financial services sector, with strong potential for continued growth given the increasing importance of digitalisation and compliance. In the financial year ending March 2021, Fenergo’s revenue increased by 17% to USD$107 million.

Marc Murphy, Founder and CEO, Fenergo said: “We are delighted that Astorg and Bridgepoint have chosen to invest in our company, providing us with the financial strength required to pursue our ambitious high-growth strategy. Both Astorg and Bridgepoint have enormous experience and credibility in our sector, something I am keen to leverage over the coming years. Ultimately, we only exist to serve the needs of our customers. We are looking forward to partnering with them in the next phase of our development.”

Benoît Ficheur, Partner in charge of growth investments at Astorg, said: “We have tracked Fenergo for many years and have been impressed with its strong market position, innovative technology and consistent strong positive feedback from a customer base of large financial institutions. We are thrilled to partner with Bridgepoint to help shape the future of this unique company. Marc Murphy and his team have proven their strength year after year in this very demanding industry. This investment confirms our commitment to backing fast-growing and innovative software leaders.”

David Nicault, Partner responsible for Bridgepoint’s investment activity in technology, said: “We are delighted to partner with Astorg on the exciting next phase for Fenergo. Continued pressure on financial institutions to improve their compliance work, while at the same time managing margins and increased regulation, has created the need for integrated digital solutions that enable reduced operating costs, improve capital allocation and comply with regulations. We are looking forward to working closely with the management team at Fenergo as they build on the company’s success to date and realise its full growth potential.”

Financial terms of the transaction were not disclosed.

Advisors involved included:

– for Fenergo: UBS, Willkie Farr & Gallagher, William Fry, and PwC

– for Bridgepoint and Astorg: Credit Suisse, William Blair, Torch Partners, Arma Partners, Paul Hastings, Allen & Overy, Ernst & Young, and GreySpark Partners

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Lightyear Capital, Oak HC/FT, and Greater Sum Ventures Close on Sale of Therapy Brands to KKR

Lightyear
05.18.2021

New York, NY – May 18, 2021 – Lightyear Capital LLC (“Lightyear”), Oak HC/FT, and Greater Sum Ventures (“GSV”) today announced that investment funds affiliated with Lightyear, Oak HC/FT, and GSV have completed the sale of Therapy Brands to KKR. Financial terms were not disclosed. Funds affiliated with Lightyear and Oak HC/FT acquired a majority stake in Therapy Brands in July 2018.

Therapy Brands provides practice management, integrated patient payments, revenue cycle management, patient engagement, tele-health and data management solutions for mental and behavioral health practices to support their clinical, administrative and billing needs. The Therapy Brands suite of software tools enables more than 28,000 practices in psychotherapy, applied behavioral analysis, substance use recovery and physical therapy to streamline their practices and focus on their patients.

“We are delighted with the outcome of our investment in Therapy Brands,” said Mark F. Vassallo, Managing Partner of Lightyear Capital. “Over the course of our investment, Therapy Brands tripled in size, completing nine strategic acquisitions, increasing its client base, growing revenue by cross-selling value-added solutions and doubling its payments penetration. Our experience with Therapy Brands further supports our pursuit of attractive investment opportunities in embedded payments models as we see tremendous demand across a number of fast-growing verticals. We wish Kimberly and the entire team at Therapy Brands great continued success.”

“Oak HC/FT’s investment in Therapy Brands highlights our dual aim of backing tech-enabled companies that are increasing the quality and lowering the cost of healthcare,” said Andrew Adams, Co-Founder and Managing Partner of Oak HC/FT. “We are proud of all that Therapy Brands – led by a dedicated team – has accomplished and we’re looking forward to seeing how the company continues to innovate at a time when mental and behavioral health care is more in demand and important than ever.”

“We are pleased with the success of our investment in Therapy Brands,” said Ross Croley, CEO and Founder of GSV. “From the platform’s inception, we’ve provided strategic guidance to the management team on acquisitions and operations, and it’s exciting to see the execution and outcome of our thesis.”

“I want to thank the entire Therapy Brands team for their invaluable support and investment to drive client growth, adoption of our value-added solutions and expand our portfolio,” said Kimberly O’Loughlin, CEO of Therapy Brands. “While we are excited about partnering with KKR on our next chapter of growth, we are grateful to Lightyear, Oak HC/FT and GSV for their support in enabling our success.”

William Blair and TripleTree acted as financial advisors and Davis Polk & Wardwell LLP as legal advisor to Therapy Brands.

About Therapy Brands
At a time when the topics of digital connectivity and access to care are at the forefront of the cultural conversation in the U.S., Therapy Brands is equipping practitioners with effective solutions to address the growing needs of mental and behavioral health, substance use recovery, applied behavior analysis and rehabilitation populations. Through purpose-built, fully integrated practice management and HER solutions provided by Therapy Brands, healthcare providers can improve patient quality of care and support better health outcomes for those they serve. Therapy Brands is headquartered in Birmingham, AL. For more information, please visit us at: https://www.therapybrands.com.

About Lightyear Capital LLC
Founded in 2000, Lightyear Capital is a financial services-focused private equity firm based in New York. Through its affiliated private equity funds, Lightyear makes primarily control investments in North America-based, middle-market companies across the financial services spectrum, including asset and wealth management, banking, brokerage, healthcare financial services, insurance, payments and processing, and specialty finance. The firm brings focus and discipline to its investment process, as well as operating, transaction and strategic management experience, along with significant contacts and resources beyond capital. For more information, please visit www.lycap.com.

About Oak HC/FT
Founded in 2014, Oak HC/FT is the premier venture growth-equity fund investing in Healthcare Information & Services (“HC”) and Financial Services Technology (“FT”). With $3.3 billion in assets under management, we are focused on driving transformation in these industries by providing entrepreneurs and companies with strategic counsel, board-level participation, business plan execution and access to our extensive network of industry leaders. Oak HC/FT is headquartered in Greenwich, CT, with offices in Boston and San Francisco. Follow Oak HC/FT on Twitter, LinkedIn, and Medium.

About Greater Sum Ventures
Greater Sum Ventures (GSV) is an entrepreneurial family office that invests its own capital in middle market software and tech-enabled services companies. With entrepreneurial roots and proven operational and investing experience, GSV works with select independent co-investing partners to build platforms of technology companies that revolutionize the industries they serve. Headquartered in Knoxville, Tennessee, GSV provides access to capital and operational support to midmarket technology firms all over the world. To learn more, visit GreaterSumVentures.com.

Media Contacts:

For Lightyear:
Elliot Sloane
(917) 291-0833
esloane@throughlineco.com

For Oak HC/FT:
Michelle Daubar
(617) 803-1707
michelle@oakhcft.com

For GSV:
Kristin Alm
(865) 850-6087
kristin.alm@greatersumventures.com

For Therapy Brands:
mediainquiries@therapybrands.com

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Baring Private Equity Asia and Alibaba Enter Partnership with The CrownX: Leads USD400mm Investment

Ho Chi Minh City, 18th May 2021 – Masan Group Corporation (HOSE: MSN, “Masan”) and a consortium led by Alibaba Group (“Alibaba”) and Baring Private Equity Asia (“BPEA”) today announced the signing of definitive agreements for the acquisition of a 5.5% stake in The CrownX (“TCX” or the “Company”) for a total cash consideration of USD400 million (the “Transaction”). The CrownX is Masan’s integrated consumer retail arm that consolidates its interests in Masan Consumer Holdings (“MCH”) and VinCommerce (“VCM”). The Transaction implies a pre-money valuation of USD6.9 billion for 100% of its equity, an equivalent of USD93.5 (c. VND 2,150,000) per share. Masan will own 80.2% of the Company post the consortium’s investment.

The formation of The CrownX last year brought together two industry leaders to form a consumer and retail powerhouse. As part of Alibaba’s investment, The CrownX will now partner with Lazada to build the Company’s digital presence and capabilities and accelerate the offline to online (“O2O”) market in Vietnam. With this partnership, the Transaction marks a shared vision across the Company’s shareholders that The CrownX has the potential to establish Vietnam’s first tech-enabled consumer ecosystem and expand its reach to serve consumers nationwide.

“This strategic partnership will accelerate our ability to achieve our goal of transforming The CrownX into a one-stop shop to serve consumers’ everyday needs, whether offline or online, “Point of Life”. Our immediate priority is to modernize Vietnam’s grocery market and develop an unparalleled consumer proposition from assortment to shopping experience,” said Danny Le, Chief Executive Officer of Masan Group. “I strongly believe that this partnership will reduce our learning curve and enable us to reach our endgame more efficiently and effectively”.

“The combination of Alibaba’s online retail expertise, Lazada’s e-commerce platform in Vietnam, and Masan’s leading offline network will be a strong catalyst to modernize Vietnam’s retail landscape. We look forward to building a champion offline-to-online platform alongside Masan,” said Kenny Ho, Head of Investment for Southeast Asia, Alibaba Group. 

“We are delighted to be partnering with Masan and Alibaba, and believe this strategic investment has the potential to supercharge The CrownX’s growth in a nascent retail market and create the largest consumer ecosystem in Vietnam. As a long-term investor in the country, we think Vietnam has a long runway for growth supported by strong macroeconomic tailwinds and attractive demographics,” said Janice Leow, Managing Director at BPEA. “The CrownX also has tremendous digital potential, particularly in e-commerce and data analytics. BPEA prioritizes digital transformation in all of our portfolio companies, and we look forward to working with the Company in its next stage of growth.”

As a part of the Transaction, VCM will enter a Strategic Cooperation Agreement (“SCA”) with Lazada, Alibaba’s South East Asia e-commerce platform:

  • VCM will be the preferred grocery retailer of choice on Lazada’s e-commerce platform in Vietnam
  • The parties will co-share know-how, co-develop analytics to develop grocery as a key online category
  • Transform VCM’s offline stores into pick-up points for online orders
  • Explore synergies between the respective parties’ logistics platforms for service and cost optimization for consumers

Grocery accounts for 50% of Vietnam’s retail market and 25% of consumer wallet share and is of essential daily use, but online penetration is still nascent. Masan has aspirations for The CrownX’s online Gross Merchandise Value to account for at least 5% of its total sales value in the upcoming years.

Credit Suisse (Singapore) Limited acted as the exclusive financial advisor to Masan Group. Deutsche Bank acted as the exclusive financial advisor to BPEA. The Transaction closing is subject to customary corporate approvals.

Masan is also in advanced discussions regarding a further strategic investment of USD300 – 400 million into The CrownX from other investors, expected to close in 2021.

MASAN GROUP CORPORATION

Masan Group Corporation (“Masan”) believes in doing well by doing good. The Company’s mission is to provide better products and services to the 100 million people of Vietnam so that they can pay less for their daily basic needs. Masan aims to achieve this by driving productivity with technological innovations, trusted brands, and focusing on fewer but bigger opportunities that impact the most lives.

Masan Group’s member companies and associates are industry leaders in branded food and beverages, branded meat, value-add chemical processing, and financial services, altogether representing segments of Vietnam’s economy that are experiencing the most transformational growth.

BARING PRIVATE EQUITY ASIA

Baring Private Equity Asia (BPEA) is one of the largest private alternative investment firms in Asia, with assets under management of USD23 billion. BPEA manages a private equity investment program, sponsoring buyouts and providing growth capital to companies for expansion or acquisitions with a particular focus on the Asia Pacific region, as well as dedicated funds focused on private real estate and private credit. The firm has a 24-year history and over 200 employees located across offices in Hong Kong, China, India, Japan, Australia, Singapore, and the US.

BPEA is a responsible investor that seeks to create value for all stakeholders through a sustainable approach to investing. The Firm is a signatory to the UNPRI (United Nations Principles for Responsible Investment) and is committed to action within its own business and the companies in which it invests to drive sustainability across a range of issues, from climate change to social concerns to effective governance.

For more information, please visit www.bpeasia.com.

ALIBABA GROUP

Alibaba Group’s mission is to make it easy to do business anywhere. The company aims to build the future infrastructure of commerce. It envisions that its customers will meet, work and live at Alibaba, and that it will be a good company that lasts for 102 years.

THE CROWN X

The CrownX is a consumer-retail platform that currently consolidates Masan’s interests in MCH and VCM. The company was established with the vision to become a “Point of Life” platform in order to provide more products and services to Vietnamese consumers online and offline.

CONTACTS:

Investors/Analysts

Tanveer Gill
T: +84 28 6256 3862
E: tanveer@msn.masangroup.com

Media

Van Pham
T: +84 90 9216 292
E: vanpth@msn.masangroup.com

For BPEA

Fergus Herries
T : +852 5970 3618
E : fergus.herries@newgate.asia

This press release contains forward-looking statements regarding Masan’s expectations, intentions or strategies that may involve risks and uncertainties. These forward-looking statements, including Masan’s expectations, involve known and unknown risks, uncertainties and other factors, some of which are beyond Masan’s control, which may cause Masan’s actual results of operations, financial condition, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. You should not rely upon forward-looking statements as predictions, future events or promises of future performance.

 

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