Category Archives: News

EQT Private Equity broadens investor base in Epidemic Sound – brings in AMF, Alecta and TIN

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  • EQT Private Equity brings in blue chip investors Alecta, AMF and TIN in a minority sale in Epidemic Sound
  • The new partners broaden Epidemic Sound’s investor base and add additional resources to support its long-term growth
  • EQT remains as largest owner of Epidemic Sound and continues to back its mission to soundtrack the internet

EQT is pleased to announce that the EQT Mid Market Europe fund (“EQT Private Equity”) brings in Swedish blue chip pension funds Alecta and AMF and fund management company TIN through a minority sale in Epidemic Sound (“Epidemic” or “the Company”), the market leading platform for restriction-free music.

Today’s announcement comes just two weeks after the news that EQT Growth and Blackstone Growth jointly have invested USD 450 million in the Company. The welcoming of AMF, Alecta and TIN now concludes Epidemic Sound’s total funding round of approximately USD 540 million at a USD 1.4 billion valuation.

Epidemic Sound’s mission to soundtrack the internet by providing content creators and online storytellers with restriction-free music is not something that happens overnight, but the Company is taking incremental steps in that direction. Today, Epidemic’s music is played for over one billion hours on average per month on YouTube alone – a 400 percent increase since July 2019. AMF, Alecta and TIN all share Epidemic’s long-term mindset and bringing them in as partners broadens the investor base and adds additional resources to support continuous growth.

After having acquired a 40 percent stake in Epidemic Sound in 2017, EQT Private Equity has over the past years invested heavily in growing the Company’s online reach and distribution capabilities. EQT has also supported the transition of Epidemic’s physical sales operations to a digital and highly scalable sales channels offering. Furthermore, over the past few years, the Company’s organizational backbone has been significantly improved while revenues have increased by more than five times.

Following today’s announcement, EQT Private Equity and a group of minority shareholders are partially selling stakes, but EQT remains as the largest owner in Epidemic Sound as a testimony to its belief for long-term value creation and strong growth potential.

Victor Englesson, Partner and Investment Advisor at EQT Partners, commented, “Epidemic Sound is a Swedish success story and the company is the most recent unicorn coming out of our country. CEO Oscar Höglund and his team have built Epidemic by combining two of Sweden’s most well known export commodities – music and technology, and EQT is proud to continue supporting their global growth journey. We are also excited to welcome blue-chip investors AMF, Alecta and TIN as new partners. In their capacity as managers of Swedish pension capital, they all share our mindset of long-term and responsible ownership.”

Oscar Höglund, Co-founder and CEO of Epidemic Sound, commented, “I’m delighted to welcome our new investors on board to help us accelerate our mission to soundtrack this generation’s greatest achievement: the internet. Together with our investors and our creative communities, we’re excited to continue supercharging two things that have become synonymous with Sweden: music and technology.”

The transaction closed on 22 March 2021.

Contact
EQT Press Office, press@eqtpartners.com, +46 8 506 55 334

About EQT
EQT is a purpose-driven global investment organization with more than EUR 84 billion in raised capital and currently more than EUR 52 billion in assets under management across 17 active funds. EQT funds have portfolio companies in Europe, Asia-Pacific and North America with total sales of more than EUR 27 billion and approximately 159,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.

More info: www.eqtgroup.com
Follow EQT on LinkedIn, Twitter, YouTube and Instagram

About Epidemic Sound
Epidemic Sound, the market leading platform for restriction-free music, is headquartered in Stockholm, heard around the globe and on a mission to soundtrack the world.

The company has democratized access to music for storytellers. Its innovative digital rights model paves the way for creators – everyone from YouTubers to small businesses to the world’s largest brands – to use ‘restriction-free music’ to take their content to the next level, whilst simultaneously supporting the musicians it works with both financially and creatively.

The company was co-founded in 2009 and has offices in six major cities across the globe: Stockholm, New York, Los Angeles, Seoul, Hamburg and Amsterdam. Epidemic is backed by EQT, Blackstone Growth, Creandum, Atwater Capital and its Chairperson is Vania Schlogel, Managing Partner & Founder at Atwater Capital.

More info: www.epidemicsound.com

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Audax Private Equity Completes the Sale of AI Fire to Snow Phipps Group

-Audax Private Equity (“Audax”) has completed the sale of AI Fire, LLC (“AI Fire” or the “Company”) to Snow Phipps Group (“Snow Phipps”).

Headquartered in Long Beach, CA, AI Fire is a leading fire and life safety provider to both national account customers via a vendor partner network and regional customers through its self-perform district operations. The Company offers a broad range of services including routine inspections, repair services, customized work orders, and system installations. AI Fire serves over 10,000 unique customers across national chains and healthcare, financial, industrial, and other commercial end-markets. The Company operates a network of 20 district offices and two national call centers. Since Audax’ investment in AI Fire in April 2017, the Company has completed 11 acquisitions, adding broader service capabilities, and expanding the self-perform footprint in the Northeast, Texas, and Rocky Mountains.

Mike Lloyd, CEO of AI Fire, said, “Audax has been a valuable partner in helping us grow AI Fire into a leading national provider of fire and life safety services. With Audax’ support, we were able to grow the Company organically and via acquisitions while investing in key talent and systems to support and sustain growth. We look forward to partnering with the Snow Phipps team to continue executing on our growth strategy.”

Jay Mitchell, Managing Director at Audax, said, “We are proud to have partnered with Mike Lloyd and the AI Fire team in creating a leading platform in the national fire and life safety market. The Company expanded its service offering and geographic footprint through organic initiatives and strategic acquisitions while investing in talent and corporate infrastructure. We wish continued success for Mike and the entire team as they embark on their next chapter of growth.”

Terms of the transaction were not disclosed. Kirkland & Ellis LLP and Goulston & Storrs PC served as legal advisors and Lincoln International LLC served as financial advisor to AI Fire.

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The Carlyle Group partners with END.

Carlyle

London, UK – Global investment firm The Carlyle Group (NASDAQ: CG) today announces that it has agreed to acquire a majority stake in luxury, streetwear and sportswear retailer END. (www.endclothing.com). The stake is being acquired from founders Christiaan Ashworth and John Parker, who will retain a significant minority stake and remain Co-CEOs of the company. Index Ventures, who currently hold a minority stake, will fully exit. The transaction will close on 1 April 2021.

Founded in 2005 and headquartered in Newcastle, UK, END. is a global multi-brand, digital-led retailer, featuring luxury and contemporary fashion and the best in sneakers and streetwear. The company partners with more than 500 designers and brands, and has developed a highly engaged and loyal customer base through its exclusive collaborations and its unique omni-channel offering, including its online platform, mobile apps and physical stores. END. is widely recognised for its focus on a high-quality consumer experience and its curated product selection. The company employs more than 650 people in the UK and ships to over 100 countries worldwide. In the year to 31 March 2020, END. generated revenues of £170m, of which 65% related to sales outside of the UK.

Leveraging its significant experience in the Consumer sector, The Carlyle Group will support END.’s expansion, both within the domestic UK market as well as internationally. Equity for the investment will be provided by Carlyle Europe Partners (CEP) V, a €6.4bn fund investing in European opportunities across a range of sectors and industries, and an affiliate of Carlyle Asia Partners (CAP) V, a US$6.6bn fund focused on buyout and strategic investments across a range of sectors in the Asia Pacific region.

Christiaan Ashworth and John Parker, Co-Founders and Co-CEOs, said: “We are thrilled to welcome Carlyle as our new partner. Their experience and strong track record in Luxury and Streetwear will be invaluable to us in supporting END.’s long-term and sustainable growth strategy. Carlyle’s industry knowledge and truly global platform will be instrumental as END. continues to reach an increasingly international audience. We’d also like to thank Index Ventures for being a fantastic partner and great to work with over the last 7 years.”

Massimiliano Caraffa, Managing Director leading Consumer & Retail for the Carlyle Europe Partners advisory team, said: “We are attracted to END.’s distinctive style, which mixes luxury and contemporary brands with the best in sneakers and sportswear. We are excited by the many growth opportunities that lie ahead for the company, including the launch of womenswear as well as further international expansion.”

Patrick Siewert, Managing Director for the Carlyle Asia Partners advisory team, said: “Christiaan and John have built a unique offering in the market and we look forward to supporting END. through leveraging our strategic industry knowledge and global network, while staying true to the company’s core values that have supported its success to date.”

The investment in END. builds on Carlyle’s long-term global focus on Consumer, a sector in which the firm has invested over $20 billion to date. A core component of Carlyle’s strategy has been to grow brands through international expansion. Recent exits in the Consumer space include Golden Goose and Supreme.

The Carlyle Group was advised by Morgan Stanley and RBC (M&A) and Latham & Watkins (Legal). The sellers were advised by Goldman Sachs (M&A) and Womble Bond Dickinson (Legal).

*****

Media Contacts:

END.
Press@endclothing.com

The Carlyle Group
Andrew Kenny
Andrew.kenny@carlyle.com
+44 7816 176120

About END. (www.endclothing.com)

Founded in 2005 and headquartered in Newcastle, UK, END. is a global multi-brand, digital-led retailer, featuring luxury and contemporary fashion and the best in sneakers and streetwear. The company partners with more than 500 designers and brands, and has developed a highly engaged and loyal customer base through its exclusive collaborations and its unique omni-channel offering, including its online platform (www.endclothing.com), mobile apps and physical stores. END. is widely recognised for its focus on a high-quality consumer experience and its curated product selection. The company employs more than 650 people in the UK and ships to over 100 countries worldwide.

About The Carlyle Group

The Carlyle Group (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across three business segments: Global Private Equity, Global Credit and Investment Solutions. With $246 billion of assets under management as of December 31, 2020, Carlyle’s purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. The Carlyle Group employs 1,825 people in 29 offices across five continents. Further information is available at www.carlyle.com. Follow The Carlyle Group on Twitter @OneCarlyle.

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Unit4 Announces Strategic Growth Buyout by TA Associates for a Transaction Value in Excess of US$2 Billion

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TA associates

Partnership with TA will accelerate Unit4’s global growth ambitions, both organically through cloud-based product innovation and through M&A to unlock new markets and industries

LONDON – Unit4, a global leader in enterprise cloud software for people-centric organizations, today announced it has signed a definitive agreement to receive a majority investment from TA Associates, a leading global growth private equity firm. Partners Group, a leading global private markets firm, will invest alongside TA, on behalf of its clients. Mike Ettling, CEO of Unit4, will continue to lead the company, supported by the existing management team. Advent International, the current majority shareholder in Unit4, will exit its stake in the company.

Unit4 and TA will partner to further accelerate the company’s vision of “people-centric ERP” (Enterprise Resource Planning) for mid-market enterprise organizations. As a leader that innovates for and serves people-based services industries including professional services, public sector, nonprofit and higher education, this partnership with TA will help Unit4 address the specific challenges and requirements of organizations in these industries globally.

“Our partnership with TA and Partners Group couldn’t come at a better time. With the launch of ERPx, our next generation cloud-native ERP platform, expansion of our global partner ecosystem, the creation of a strong and viable customer community with Community 4U, and deeper “people” investment in our core and growth markets, Unit4 is poised to see dramatic growth through this next phase of our journey,” said Mike Ettling, CEO of Unit4. “Our customers have expressed a need for rapid innovation, not just efficiencies, to support their growth aspirations while continuing to navigate the headwinds of the global pandemic. We believe our game-changing software and people-first, services-based mindset will help our customers thrive as the market begins to regain its momentum.”

“We have followed Unit4 for many years and have been impressed with the company’s growth and dedication, under Mike’s leadership, to serving mid-market, people-centric organizations, which aligns well with our investment philosophy,” said Morgan Seigler, a Managing Director of TA and co-head of TA’s Europe Technology Group. “We are excited to partner with Mike and the Unit4 team in the next phase of their journey and to help them invest in and deliver industry-relevant enterprise solutions that drive retention, expansion and growth in organizations across the globe.”

“Unit4 is a high-quality software solutions business with strong fundamentals and significant potential for transformative growth. TA is a firm we know very well, and we are delighted to partner with them on acquiring this exciting business,” added Bilge Ogut, Partner, Global Head Private Equity Technology, Partners Group.

The transaction is expected to close in early summer of 2021 pending customary regulatory approvals and closing conditions.

Arma Partners and Evercore are serving as financial advisors and De Brauw Blackstone Westbroek is acting as legal counsel to Unit4. Alvarez & Marsal is serving as financial and tax advisor, and Kirkland & Ellis is acting as legal counsel to TA Associates.

About Unit4
Unit4’s next-generation enterprise solutions power many of the world’s most people-focused mid-market services organizations. Our cloud ERP, HCM and FP&A applications transform work to be more meaningful and inspiring through software that’s self-driving, adaptive and intuitive, intelligently automating administrative tasks while providing easy access to the answers people need. Unit4 serves more than 6,000 customers in industries including professional services, public sector, nonprofit, and education. For more information please visit www.unit4.com, follow us on Twitter @Unit4global, or visit our LinkedIn page.

About TA Associates
TA is a leading global growth private equity firm. Focused on targeted sectors within five industries – technology, healthcare, financial services, consumer and business services – the firm invests in profitable, growing companies with opportunities for sustained growth, and has invested in more than 500 companies around the world. Investing as either a majority or minority investor, TA employs a long-term approach, utilizing its strategic resources to help management teams build lasting value in high quality growth companies. TA has raised $33.5 billion in capital since its founding in 1968 and is committing to new investments at the pace of over $3 billion per year. The firm’s more than 100 investment professionals are based in Boston, Menlo Park, London, Mumbai and Hong Kong. More information about TA can be found at www.ta.com.

About Partners Group
Partners Group is a leading global private markets investment manager. Since 1996, the firm has invested over USD 145 billion in private equity, private real estate, private debt and private infrastructure on behalf of its clients globally. Partners Group is a committed, responsible investor and aims to create broad stakeholder impact through its active ownership and development of growing businesses, attractive real estate and essential infrastructure. With over USD 109 billion in assets under management as of 31 December 2020, Partners Group serves a broad range of institutional investors, sovereign wealth funds, family offices and private individuals globally. The firm employs more than 1,500 diverse professionals across 20 offices worldwide and has regional headquarters in Baar-Zug, Switzerland; Denver, USA; and Singapore. It has been listed on the SIX Swiss Exchange since 2006 (symbol: PGHN). For more information, please visit www.partnersgroup.com or follow us on LinkedIn or Twitter.

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Longship acquires Westcon Power & Automation

Longship Fund II (“Longship”) has as of March 20th, 2021 agreed to acquire 100% of the shares in Westcon Power & Automation AS (“WPA”) from Westcon Group AS (“Westcon”).

WPA is a leading system provider of hybrid- and fully electric propulsion systems and automation solutions to the maritime industry. The company is a forerunner in development of propulsion systems with hydrogen as main energy carrier and will in 2021 deliver the hydrogen-electric propulsion system to MF Hydra, the world’s first hydrogen powered car ferry. WPA reported a pro forma revenue of NOK 480 million with NOK 60 million in EBITDA in 2020. The company employs a total of 145 employees, and is headquartered at Karmøy, Norway.

“WPA has established itself as a leading provider of green propulsion systems through deliveries of more than 30 installations since 2016. Longship is impressed by the company’s competence and approach to drive maritime decarbonization, and we are looking forward to supporting WPA in the growth journey ahead”, says Hans Tindlund, lead partner for Longship’s investment in WPA.

“Throughout the transaction process we have thoroughly gotten to know Longship and their model for active ownership, and we are excited to embark on the next chapter of WPA together with them. We envision to establish WPA as a global provider of hybrid and electric power and automation solutions, and to continue delivering high quality products paving the way for a more sustainable maritime industry”, says Gunvald Mortvedt, Chief Executive Officer of Westcon Power & Automation AS.

“WPA has grown rapidly over the past years and is well positioned to take on further growth in a global market. We are proud of the role Westcon Group has played in the WPA success story. We are equally happy to have agreed with Longship, which is a well-suited owner to take WPA into the next chapter of the growth journey”, says Rune Lande, chairman of Westcon Group.

Longship is a transformational growth investor, developing successful lower mid-market companies into mature growth businesses with institutional and strategic value. We aim to create a scalable platform for sustainable growth and profitability in our portfolio companies and support them on their accelerated growth journey.

Management and employees will become owners in Westcon Power & Automation AS, as part of a broad Management Investment Program.

Longship was advised by Boston Consulting Group, Wiersholm, and EY. Westcon Group was advised by Sparebank1 SR-Bank Markets, Selmer, and Deloitte.

For more information, please contact:

Hans Tindlund, Partner, Longship AS
+47 92 66 99 66
hans.tindlund@longship.no

Gunvald Mortvedt, CEO, Weston Power & Automation AS
+47 982 12 457
gunvald.mortvedt@westcon.no

Rune Lande, Chairman of the Board, Westcon Group AS
+47 901 25 698
lande@eikesdal.com

About Longship:

Longship is a Norwegian private equity investor established in 2015 by an experienced team of investment professionals. Longship invests in companies with significant growth potential in the Norwegian lower mid-market, and are applying a transformational growth approach, organically and through M&A. The investment team currently consists of eleven professionals, making it the leading player in the Norwegian lower mid-market. Longship closed its second fund in November 2020 with commitments of NOK 1.7 billion.

About Westcon Power & Automation:

Westcon Power & Automation (“WPA”) is a leading provider of hybrid- and fully electric propulsion systems and automation solutions to the maritime industry. The company offers complete electrical and automation systems for newbuilds and re-builds, as well as a wide range of products and services to the maritime, offshore, and onshore based industry. The comprehensive portfolio of products ranges from complete power and automation systems to stand-alone products and concepts for machine safety, maintenance, and energy efficiency improvements. The company is a forerunner in development of propulsion systems with hydrogen as main energy carrier with its own development and test facilities at Karmøy, Norway. WPA was founded in Norway in 1988 as a continuation of ABB Marine, and was later acquired by Westcon Group.

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Bridgepoint sells Calypso

San Francisco, CA – March 22, 2021 – Thoma Bravo, a leading private equity investment firm focused on the software and technology-enabled services sectors, today announced that it has reached an agreement to acquire Calypso Technology, Inc. (“Calypso”) from international private equity group Bridgepoint and global growth investor Summit Partners. The deal, which is subject to customary regulatory approvals, is expected to close in the second quarter of 2021. Financial terms of the transaction were not disclosed.

Founded in 1997 and headquartered in San Francisco with offices around the world, Calypso is a cloud-enabled provider of cross-asset, front-to-back solutions for financial markets with over 35,000 users in 60+ countries. Its award-winning software improves reliability, adaptability, and scalability across several verticals, including capital markets, investment management, central banking, clearing, and treasury.

“We are thrilled to begin the next chapter of our story alongside Thoma Bravo and are grateful to Bridgepoint and Summit Partners for their support and partnership. Our acquisition by Thoma Bravo is further validation of the unique value Calypso creates for its customers, employees and investors and a direct reflection of the hard work, collaboration and strong results the team has achieved,” said Didier Bouillard, Chief Executive Officer of Calypso. “Thoma Bravo has a proven track-record of supporting its portfolio companies by investing in growth initiatives and strategic acquisitions designed to drive long-term value and we are excited to continue delivering innovative solutions to the financial markets while accelerating our growth.”

“For more than a decade, we have admired Calypso’s position as a leader in the global capital markets software space with a highly differentiated and modern, integrated front-to-back technology platform across a wide range of asset classes,” said Holden Spaht, a Managing Partner at Thoma Bravo. “Calypso’s technology allows its world-class customer base to navigate the highly complex and regulated capital markets with greater transparency and lower costs. We look forward to partnering with Didier and his team to continue building on their great momentum supported by increased investment and innovation and an intense focus on customer success.”

Brian Jaffee, a Principal at Thoma Bravo, added, “We are thrilled to partner with such a high-quality franchise and management team to help drive continued growth both organically and through M&A. Calypso’s financial services end market is massive and it is well positioned to capitalize on the strong trend of technology outsourcing to best-in-class platform vendors, particularly as the move to the cloud accelerates. We look forward to supporting the company in this next chapter of exciting growth.”

“We are proud to have partnered with Calypso and its management team to achieve the significant transformation of the business which led to this exceptional result. Alongside a range of operational initiatives, the transition of the business to a cloud model combined with best-in-class client service was undoubtedly key in accelerating growth. With this transformation now complete and having demonstrated very robust growth throughout the COVID pandemic, the business is well placed for the next stage of its evolution under new ownership,” said David Nicault, Partner and Global Head of Digital, Technology & Media at Bridgepoint.

“As the regulatory and competitive environment grows more complex, we have seen financial institutions shift their capital markets technology spend from legacy, internally developed platforms to modern, cloud-based software solutions,” said Scott Collins, Managing Director at Summit Partners. “Calypso has supported financial institutions across developing and emerging markets on their modernization journeys. We are grateful for the partnership of the Calypso and Bridgepoint teams, and we look forward to following the company’s continued impact in the financial services sector.”

Kirkland & Ellis, LLP is serving as legal counsel to Thoma Bravo. Evercore and Jefferies are serving as financial advisors and Latham & Watkins is serving as legal counsel to Calypso, Bridgepoint and Summit Partners.

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Espresso Capital extends $6 million credit facility to Bento for Business

espresso capital

San Francisco — March 22, 2021 — Espresso Capital announced today that it has provided a $6 million credit facility to Bento for Business, a leading expense management platform designed to simplify and consolidate complex financial services for the SMB segment. The company will use the funds to make strategic enhancements to its platform while scaling the organization.

“With the financing from Espresso, we’re able to look at new ways to penetrate the market and extend our role as a leader in the sector,” says Bento CEO Guido Schulz. “We’re also making a considerable investment in product enhancements that will allow us to target larger SMB clients.”

Among those product enhancements are fixed value card and bulk administration functionality, both of which will round out the platform as the company goes after larger clients. In the process, the new functionality will help further cement Bento as a best of breed spend management solution for mid-market customers.

“Bento really stood out to us because of its robust, flexible, and highly scalable platform,” said Espresso Director Mark Gilbert. “We think that Bento has the team and product in place to attack the massive addressable market in front of them and deliver significant growth.”

“We’re excited to welcome Espresso to the Bento family as a key source of capital for strategic growth,” said Kelly Ford Buckley, General Partner at Edison Partners, one of the company’s existing investors. “Espresso has been great to work with throughout this process and will play an important role in helping Bento scale its go-to-market efforts.”

Other existing investors include Blumberg Capital and Comcast Ventures.

Speaking to why he chose Espresso, Schulz noted, “Espresso is different from other lenders we’ve encountered in our space. They’re true partners who took the time to understand our business model and have demonstrated a real interest in our success. We appreciate the highly collaborative approach they’ve brought to structuring this deal.”

About Bento for Business

Bento for Business is dedicated to modernizing the way small and mid-size businesses manage and unlock value from their working capital. Bento is the partner of choice for businesses that want a modular financial operating platform for their cash flow and spend management needs. Bento’s strategic partners also expand to the banks, payment networks and processors that want to provide digital treasury management and business banking suite options for their customers. Co-located in Chicago and San Francisco, Bento is an award-winning SMB fintech solution led by veteran financial service executives and backed by leading financial technology investors. For additional information, visit Bento for Business, Twitter and LinkedIn.

About Edison Partners

For 35 years, Edison Partners has been helping CEOs and their executive teams grow and scale successful companies. The firm’s investment team brings extensive investing and operating experience to each investment. Through a unique combination of growth capital and the Edison Edge platform, consisting of operating centers of excellence, the Edison Director Network, and executive education programs, Edison employs a truly integrated approach to accelerating growth and creating value for technology businesses. A team of experts in enterprise solutions, financial technology, and healthcare IT sectors, Edison targets high-growth companies with $10 to $30 million in revenue; investments also include buyouts, recapitalizations, spinouts and secondary stock purchases.

Edison’s active portfolio has created aggregated market value exceeding $10 billion. Edison Partners is based in Princeton, NJ and manages more than $1.6 billion in assets throughout the eastern United States.

About Espresso Capital

Espresso empowers companies with innovative venture debt solutions. Since 2009, we’ve helped more than 280 technology companies and their investors accelerate growth, extend runway, and increase strategic flexibility with non-dilutive capital. Learn more at www.espressocapital.com.

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ironSource announces combination with Thoma Bravo Advantage to create publicly-traded business platform for the app economy

CVC Capital Partners
  • ironSource, a leading business platform that enables mobile content creators to prosper within the app economy, will combine with Thoma Bravo Advantage at an implied pro forma equity value of approximately $11.1 billion
  • ironSource recorded 2020 revenue and adjusted EBITDA of $332 million and $104 million, respectively, growing revenue at 83% year over year. With ironSource’s core addressable market projected to grow to as much as $41 billion by 2025, the combination with Thoma Bravo Advantage creates a public company positioned for significant long-term growth and value creation
  • Transaction is expected to provide up to $2.3 billion in cash proceeds (a portion of which will be used for purchases from ironSource equity holders), including an oversubscribed PIPE of $1.3 billion and $1 billion of cash held in the trust account of Thoma Bravo Advantage, assuming no redemptions by public shareholders
  • After giving effect to the transaction (and assuming no redemptions by public shareholders), the company is expected to have approximately $740 million of unrestricted cash
  • An affiliate of Thoma Bravo, L.P. has committed $300 million to the PIPE; Orlando Bravo will join ironSource’s Board of Directors at transaction closing
  • Top-tier investors anchoring the PIPE include funds and accounts managed by Tiger Global Management, LLC, Counterpoint Global (Morgan Stanley), Nuveen, LLC, Hedosophia, Wellington Management, The Baupost Group, and certain funds managed by Fidelity Investments Canada ULC

ironSource, a leading business platform for the app economy, has entered into a definitive agreement to merge with Thoma Bravo Advantage (NYSE: TBA) (“TBA”), a publicly-traded special purpose acquisition company, to bring to the public markets a highly-profitable and scalable business that provides a comprehensive business platform for app developers. The transaction values ironSource at a pro forma equity value of $11.1 billion, and is supported by a $1.3 billion oversubscribed Class A ordinary share PIPE led by an affiliate of Thoma Bravo, L.P. (“Thoma Bravo”), as well as investments from Tiger Global Management, LLC, Counterpoint Global (Morgan Stanley), Nuveen, LLC, Hedosophia, Wellington Management, The Baupost Group, and certain funds managed by Fidelity Investments Canada ULC and other institutional investors. Upon closing of the transaction, the combined company will operate under the ironSource name.

ironSource provides the most comprehensive business platform for the app economy. The platform is designed to enable any app or game developer to turn their app into a scalable, successful business by helping them to monetize and analyze their app and grow and engage their users through multiple channels, including unique on-device distribution through partnerships with leading telecom operators and OEMs such as Orange and Samsung. In 2020, ironSource grew revenue 83% year-over-year to $332 million, with 94% from 291 customers with more than $100,000 of annual revenue, a dollar-based net expansion rate of 149%, and adjusted EBITDA margins of 31%. The company serves over 2.3 billion monthly active users across its global customer base.

As a public company, ironSource is expected to benefit from the financial and operational support of Thoma Bravo – one of the most experienced and successful software investors in the world. With a track record of over 300 software investments, Thoma Bravo can provide ironSource with unparalleled industry expertise and a global network.

“Joining forces with Thoma Bravo Advantage to bring ironSource to the public markets presents an opportunity to partner with the world’s leading software investor to achieve the next level of growth,” said Tomer Bar Zeev, CEO and co-founder of ironSource. “Despite our previous progress pursuing a traditional IPO, when we met with Thoma Bravo Advantage we found an alignment of vision and shared conviction about the long-term growth we can drive at ironSource that made them the perfect partner as we take this next step in growing our company, and the market as a whole.”

“As one of the fastest-growing and most innovative platforms for building and scaling businesses in the app economy, ironSource is well-positioned for continued success as a public company,” said Orlando Bravo, Chairman of the Board of Directors of Thoma Bravo Advantage, as well as a founder and managing partner of Thoma Bravo. “With a full suite of solutions across the app growth life cycle – and a unique combination of scale, business growth, and profitability – we expect ironSource to further its market leadership position as a public company. We look forward to partnering closely with Tomer and the talented ironSource team in this exciting next chapter for the company.”

“ironSource is a one-of-a-kind software company that combines an innovative, high-growth franchise with a deeply experienced management team that has a track record of success in a rapidly expanding market,” said Robert (Tre) Sayle, CEO of Thoma Bravo Advantage, as well as a partner at Thoma Bravo. “We are thrilled to be partnering with ironSource as it enters the public markets and to be able to provide Thoma Bravo’s deep software expertise and financial support to the company as it continues its growth journey.”

Company Overview

The app economy is one of the fastest-growing markets today, with millions of apps available to billions of users who spend 83% of their time on mobile devices inside apps. Within the app economy, games are the leading category of apps, accounting for the majority of apps in the Apple App Store in 2020 according to Statista, and ironSource has established a strong leadership position within this category, focusing its product development and innovation on building core infrastructure serving mobile game developers.

ironSource powers the business growth of 87% of the top 100 games, and has been ranked multiple times as one of the top 3 platforms for driving both quality and scaled user growth by leading industry indexes. In addition, 14 of the 19 games published through the ironSource platform were ranked in the top 10 most downloaded games on either the Apple App Store or Google Play Store over the course of 2020, and one of them – Join Clash – was the most downloaded game in the world in February 2021.

“Our solutions cover the entire game growth cycle, from growing your user base, to generating revenue to reinvest in growth, and then analyzing and optimizing the entire cycle to drive profitability,” said Omer Kaplan, CRO and co-founder of ironSource. “Using our platform, game developers are able to unlock a flywheel of continuous growth, and since our business model is aligned with our customer’s success, as they grow, we do too. While this cycle is most often leveraged by mobile games, it’s easily transferable to apps outside of gaming, and today 16% of our customers with more than $100,000 of annual revenue are already from industries beyond games.”

The ironSource platform is made up of two solution suites, ironSource Sonic (“Sonic”) and ironSource Aura (“Aura”). The Sonic solution suite supports developers as they launch, monetize, and scale their apps and games. The Aura solution suite allows telecom operators to enrich the device experience by creating new engagement touchpoints that deliver relevant content for their users across the entire lifecycle of the device. This creates a unique on-device distribution channel for developers to promote their apps as an integral part of the device experience.

“The Aura solution suite represents a unique value-add for developers, allowing them to get their apps discovered on millions of devices worldwide,” said Arnon Harish, President and co-founder of ironSource. “Equally important, however, is our ability to help telecom operators with digital transformation, enabling them to engage their users throughout the lifecycle of the device. By leveraging ironSource’s core capabilities around content monetization and user engagement, we were able to quickly build and deploy a solution suite for telecom operators that allows them to more fully participate in the app economy.”

The combination of these two solution suites serves to differentiate the ironSource platform, making it the most comprehensive app business platform in the market and underpinning its market leadership. That market leadership makes ironSource the de facto choice for customers looking to grow their app, and the breadth of its solutions means developers of all sizes and at all stages of growth have a way to leverage the platform. Once a developer starts working with ironSource, they typically expand their use to multiple solutions within the platform, driving a high dollar-based net expansion rate and gross customer retention rate.

“This is a very proud moment for us at Viola and for me personally. A company where we were the first investors thrives and goes public as one of the largest public tech companies in Israeli history,” said Shlomo Dovrat, co-founder of Viola Ventures and board member at ironSource. “We look forward to continuing to work with the amazing founding team of ironSource on their incredible journey.”

“We invested in ironSource in 2019 because we saw a unique opportunity to partner with a founder-led company that not only operated in an exciting market, but had already achieved impressive, profitable growth and industry leadership,” said Daniel Pindur, Partner at CVC Capital Partners. “It’s been amazing to be part of ironSource’s journey so far, and incredibly rewarding to see the company enter its next chapter of growth,” added Sebastian Kuenne, Managing Director and Head of CVC Growth Partners in Europe.

Transaction Overview

Thoma Bravo Advantage has agreed to combine with ironSource based on a $11.1 billion pro forma equity valuation and the transaction is supported by a $1.3 billion oversubscribed Class A ordinary share PIPE led by a $300 million investment by an affiliate of Thoma Bravo, as well as investments from Tiger Global Management, LLC, Counterpoint Global (Morgan Stanley), Nuveen, LLC, Hedosophia, Wellington Management, The Baupost Group, and certain funds managed by Fidelity Investments Canada ULC and other institutional investors.

The transaction, which has been unanimously approved by the Boards of Directors of ironSource and Thoma Bravo Advantage, is expected to close in the second quarter of 2021, subject to customary closing conditions, including approval by Thoma Bravo Advantage’s shareholders.

Shares issued to the sponsor of Thoma Bravo Advantage will be subject to a 12-month lock-up with limited releases based on the trading price of the shares following the 150th day after the closing of the transaction; nearly all of ironSource’s shareholders will be subject to a 6-month lock-up after the closing of the transaction, subject to the same early release applicable to Thoma Bravo Advantage.

Following the closing of the transaction, ironSource will have a dual class equity structure whereby current shareholders of ironSource will own Class B ordinary shares with five votes per share and holders of Class A ordinary shares, including Thoma Bravo Advantage’s shareholders, will have one vote per share.

After giving effect to the transaction and assuming no redemptions by the Thoma Bravo Advantage shareholders, the company is expected to have approximately $740 million of unrestricted cash.

Total consideration to ironSource shareholders will be $10 billion, which is expected to be comprised of $1.5 billion in cash consideration and a majority of the shares of the combined company.

Upon completion of the transaction, the combined company will retain the ironSource Ltd. name.

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DIF Capital Partners and OX2 sign 63 MW wind power deal

DIF

DIF Capital Partners (“DIF”) and OX2 AB (“OX2”) are pleased to announce that DIF, through DIF Infrastructure Fund VI, will acquire 100% of two onshore wind projects in the Podlaskie and Łódź regions of Poland, with a total capacity of 63 MW. As the projects are ready to build, DIF will invest through the construction of the projects.

The wind projects, which will be equipped with Vestas V126 turbines, have been developed and will be constructed under a tailored EPC contract by OX2. Construction commenced upon closing of the transaction and the projects are expected to become operational by end of 2022. Once commissioned, OX2 will be responsible for the technical and commercial management of the projects, which benefit from contracts-for-difference with the Polish state, providing fixed price tariffs for the power offtake for a period of 15 years.

The total production is estimated to be c. 200 GWh per year, which is the equivalent to the annual power consumption of around 50,000 households; thereby avoiding around c. 70,000 tonnes of CO2 emissions per year from fossil fuels. The projects will support Poland’s energy transition by expanding the country’s renewable energy capacity and reducing dependency on power production from fossil fuels.

Christopher Mansfield, Partner at DIF Capital Partners, said: “DIF is delighted to enter the Polish renewables market through this new partnership with OX2 and to support Poland’s ongoing energy transition. The projects fit well within the investment strategy of DIF Infrastructure Fund VI and adds to the track record of DIF-managed funds, which have invested in c. 2.3GW of wind and solar power projects in Europe, North and South America and Australia.

Paul Stormoen, CEO, OX2, said: “I am very happy to welcome DIF Capital Partners as a new partner with its extensive experience from long-term investments in renewable energy projects. Our partnership is a significant step in OX2’s ongoing expansion in Poland. It more than quadruples the amount of green energy that will be produced from the wind farms in Poland built by OX2.”

DIF was advised by PWC (financial), Allen & Overy (legal) and DNV (technical). OX2 was advised by DNB Markets (financial) and DLA Piper (legal).

About DIF Capital Partners

DIF Capital Partners is a leading global independent fund manager, with €8.5 billion of assets under management across nine closed-end infrastructure funds and several co-investment vehicles. DIF Capital Partners invests in greenfield and operational infrastructure assets located primarily in Europe, the Americas and Australasia through two complementary strategies:

  • Traditional DIF funds, of which DIF Infrastructure Fund VI is the latest vintage, target equity investments with long-term contracted or regulated income streams including public-private partnerships, concessions, utilities, and (renewable) energy projects.
  • DIF CIF funds target equity investments in small to mid-sized economic infrastructure assets in the telecom, energy and transportation sectors.

DIF Capital Partners has a team of over 160 professionals, based in nine offices located in Amsterdam (Schiphol), Frankfurt, London, Luxembourg, Madrid, Paris, Santiago, Sydney and Toronto. For further information please visit www.dif.eu

About OX2

OX2 develops, builds and manages renewable power generation. OX2 has taken a leading position in large-scale onshore wind power over the past 15 years, having developed and constructed more than 2.4 GW of wind power in Europe. OX2 currently has contracted asset management services for 44 wind farms 2.25 GW). OX2’s mission is to lead the ongoing energy transition and promote a more sustainable future. OX2 has operations in Sweden, Norway, Finland, Poland, Lithuania and France. Its head office is in Stockholm, Sweden. Sales revenue in 2020 amounted to €510 million. For more information, please visit: http://www.ox2.com.

For further questions, please contact:

DIF Capital Partners
Allard Ruijs, Partner
a.ruijs@dif.eu

OX2 Poland
Katarzyna Suchcicka
Country Manager
katarzyna.suchcicka@ox2.com
Mobile: +48 507 701 903

OX2 Group
Head of Communications
Mikael Östlund
mikael.ostlund@ox2.com
Phone: +46 709 100 159

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EQT Real Estate signs pre-lease for development of 14.1k sqm education property in Stockholm

eqt
The rapid pace of urbanization and creation of new residential neighbourhoods is placing new demands on cities’ and creating new urban landscapes devoid of necessary local amenities, such as modern education facilities in central locations. Guided by this macro trend and combined with deep sector expertise, EQT Real Estate is playing its part in solving this societal challenge.
Before
EQT Real Estate recognizes the need for modern education properties as particularly high in Stockholm due to the demographic development of a rapidly increasing population. In June 2018, EQT Real Estate acquired the leasehold to Hönsfodret, an education and office asset located on the island of Södermalm in central Stockholm. In collaboration with AcadeMedia, a leading education provider in Northern Europe, EQT Real Estate developed a clear thesis and vision for the property, applying a business-to-business mindset in property development and providing a corporate solution for their real estate needs.
After
EQT Real Estate has signed a 16-year pre-lease with AcadeMedia for a 14.1k sqm development called Campus Södermalm which upon completion of the heavy refurbishment in H2 2022 will house four Upper Secondary Schools. All the schools are currently operational elsewhere in Stockholm and will relocate to provide their students access to a new inspirational environment that promotes a healthy lifestyle with onsite facilities for physical activities and shared communal areas to facilitate student interaction.

The property is currently being remodelled and extended to house state-of-the-art classrooms, labs, a library, a sports centre and spacious communal areas. In addition, the asset will house a student managed restaurant that will serve the local community creating additional amenity for the local residents. Campus Södermalm directly overlooks the water and benefits from multiple means of public transportation in close proximity. Completion of the construction works is expected in the second half of 2022. The lease with AcadeMedia will commence upon completion of the development, in time for the start of the academic year.

The development will target a BREAM certification of ‘very good’. The remodelling of the facade, all doors and windows as well as the roof will ensure that the property will exceed the ESG targets required by occupiers and institutional owners. An indoor bicycle storage room will be provided to accommodate in excess of 170 bikes, encouraging students to choose a healthy means of transportation year-round.

Henrik Orrbeck, Partner at EQT Real Estate, commented: “For a long time, AcadeMedia has been looking for a property with an attractive location in central Stockholm to house Campus Södermalm. EQT identified the leasehold to Hönsfodret, at the time 50 percent vacant, and saw the potential to transform it into one of Stockholm’s foremost educational properties. We are very happy that we were able to help AcadeMedia realize their vision for Campus Södermalm.”

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