Category Archives: News

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.

Categories: News

Tags:

Bridgepoint sells Calypso

Bridgepoint

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.

Categories: News

Tags:

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.

Categories: News

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.

Categories: News

Tags:

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

Categories: News

Tags:

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.”

Categories: News

Tags:

Currencies Direct Completes £165 Million Dividend Recapitalisation

CVC Capital Partners

Transaction Supported by incumbent lenders CVC Credit and Alcentra

 

Palamon Capital Partners (“Palamon”), a pan-European growth investor, and Corsair, a global specialist investment firm focused on financial & business services and infrastructure, today announced that portfolio company Currencies Direct (the “Company”), a global leader in digital foreign exchange (“FX”) and international payment services to high value private clients and SMEs, completed a £165 million dividend recapitalisation. The recapitalisation was provided by incumbent lenders CVC Credit and Alcentra, who backed Palamon and Corsair’s acquisition of Currencies Direct in 2015. The refinancing includes a 5.5x senior portability feature.

Currencies Direct is one of the largest platforms globally in an increasingly consolidating international payments market. The Company focuses on high-value transactions and the mass affluent segment of the FX market, as well as SMEs. Currencies Direct combines a full-stack, fully digital offering (c. 80% of total trades) with a premium, award-winning customer service model that allows it to cater to the universal needs of its target customer segments.

Since Palamon and Corsair’s acquisition in 2015, Currencies Direct has increased revenue from £40 million (CY2015) to £85 million (CY2020), and nearly tripled EBITDA from £13 million to £33 million over the same period, with net leverage reducing from more than 5.5x at acquisition to 1.1x at the time of the dividend recapitalisation, enabling a substantial return of capital for shareholders.  The Company has grown organically by tripling the size of its customer base, expanding its B2B2C affiliate network and broadening its geographic reach. Currencies Direct also recently signed an exclusive white label agreement to provide FX services to Hargreaves Lansdown, one of the largest wealth managers in the UK with approximately 1.5 million active clients.

Currencies Direct’s strong cash generation has also allowed the Company to self-fund three add-on acquisitions and complete a significant £20 million investment in a full upgrade of its digital assets, including a proprietary and highly scalable transactional platform that opens numerous avenues for additional growth. The platform uses API and Machine Learning capabilities and enables full transactional and bankside straight-through processing. Its multi-tenant architecture allows the Company to seamlessly pursue its global, multi-brand strategy and M&A programme – supporting its continued growth into European, US, and Asian markets. Currencies Direct has also broadened its product range with the launch of new multi-currency wallets that serve customers making smaller transactions, improving the Company’s penetration of the lower mass-affluent market segment.

Ali Rahmatollahi, Partner of Palamon, said, “Completing a sponsor dividend recapitalisation during the global pandemic is a true testament to the business’s resilient model, attractive financial profile, and ability to consistently deliver growth and profitability despite Brexit and difficult market conditions. Our lending partners CVC and Alcentra have been supporting us since the initial acquisition and we are delighted to have their continued backing.”

Derrick Estes and Raja Hadji-Touma, Partners at Corsair, said, “Currencies Direct has undergone a period of tremendous growth and transformation over these last few years while providing unmatched FX and payment processing services to their rapidly expanding customer base. We are pleased that CVC and Alcentra share our confidence in the long-term growth opportunities for the Company and are excited for this next chapter.”

Keith Hatton, Chief Executive of Currencies Direct, said: “With Palamon and Corsair’s financial and strategic support, we have been able to implement a highly successful growth strategy that has nearly tripled the size of the business in five years. Currencies Direct is at an exciting turning point, and our continued investment in technology over the past three years has set the stage for a new phase of transformative growth. Our recent wealth management contract wins and growing global footprint – including through the recent opening of our new office in Singapore – underline our success in pursuing new expansion initiatives.”

Kris Winter, Executive Director at Alcentra said, “We have been supporting Currencies Direct since the initial acquisition and have continued to be impressed by the resiliency and the performance of the business, driven by its differentiated and defensible value proposition.  With banks still holding approximately 80% share of the FX market and new international territories being targeted, there is significant room for Currencies Direct to continue its strong growth trajectory.”

Chris Fowler, Managing Director at CVC Credit said, “Currencies Direct has demonstrated impressive resilience amid global disruption and even managed to increase revenues and EBITDA through 2020. We remain confident in the Company’s long-term growth prospects and are pleased to continue to support the business.”

Categories: News

Tags:

EQT Private Equity to sell DESOTEC to Blackstone

eqt
  • EQT Private Equity to sell Belgium-based DESOTEC, a leading European environmental services company and provider of mobile filtration solutions for a broad range of industrial applications through a unique, closed-loop service model
  • DESOTEC has pioneered the market for mobile filters and has achieved strong top-line growth since foundation, which further accelerated under EQT Private Equity’s ownership
  • EQT Private Equity has made substantial investments in DESOTEC’s sales and digitization capabilities, and supported technology- and R&D investments related to its filters and furnaces to enable a more circular service offering

EQT is pleased to announce that the EQT VII fund (“EQT Private Equity”) has entered into an agreement to sell DESOTEC (“the Company”) to private equity funds managed by Blackstone (“Blackstone”).

Based in Roeselare, Belgium, DESOTEC is a leading European environmental services company with a mission to protect the planet through innovative circular filtration solutions, enabling clean water, air, and soil. The Company was founded in 1990 and is focusing on mobile purification solutions mainly based on activated carbon technology.

DESOTEC’s fleet of approximately 2,700 mobile filters is the largest of its kind in Europe and it serves a broad range of industrial applications, including air emission, biogas, remediation, wastewater, and chemicals. The Company’s mobile filters enable its customers to comply with environmental regulations and sustainability requirements, through its closed-loop, “Filtration-as-a-Service” rental solution.

EQT Private Equity acquired DESOTEC in 2017 and has since then made significant investments in its sales and digital capabilities. Moreover, EQT has supported technology- and R&D investments related to DESOTEC’s filters and furnaces to enable a more circular service offering. Today, the Company is a European market leader in its field with an impressive track-record of double-digit organic growth, which was further accelerated under EQT Private Equity’s ownership.

The sale of DESOTEC represents another successful exit for EQT Private Equity in the Benelux and it further cements EQT’s position and momentum in the Benelux market.

Bert Janssens, Partner and Investment Advisor, Head of Benelux and Global Co-Head of the TMT sector team at EQT Partners said, “It has been a privilege to partner with Mario and the ‘DESOTEC Warriors’ team on this successful journey, and to support them in their mission to protect our planet. In the last years, management has executed on an ambitious strategic agenda, which was centered around sales acceleration, digitization, and strengthening the company and circular service proposition. The trajectory under EQT Private Equity’s ownership exemplifies our approach of responsible ownership, focused on investing in companies to accelerate growth. Furthermore, this investment showcases the win-win of investing in companies that provide solutions to societal problems. We are confident that DESOTEC will continue to be successful under its new ownership and we wish the business, management, and all its employees every success in the future.”

Mario Hertegonne, CEO of DESOTEC, said, “Over the past four years we have been on an exciting and transformational journey, supported by EQT who has significantly contributed to helping us transform the business and accelerate growth by making substantial investments. We would like to thank Bert and the EQT team, as well as the DESOTEC supervisory board, for their continued support and we look forward to continuing to develop our business together with Blackstone”.

The transaction is subject to customary conditions and approvals and is expected to close in Q2 2021. The parties have agreed not to disclose the transaction value.

Rothschild & Co acted as financial advisor and Freshfields Bruckhaus Deringer LLP acted as legal advisor to EQT Private Equity and DESOTEC.

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 DESOTEC
DESOTEC, founded in 1990, is the leading European provider of mobile filtration technology through a unique and circular service concept, which helps protect the planet by enabling clean water, air, and soil. DESOTEC’s customer base is constantly growing thanks to a strong focus on 24/7 service and a commitment to design and deliver the best solution in close dialogue with the customer. Through in-depth expertise of industrial applications and continuous investment in mobile filters, centralised reactivation capacity and well-positioned European hubs, DESOTEC ensures that the European industry can meet the increasing regulations for a better and cleaner environment.

More info: www.desotec.com

Categories: News

Tags:

Landers Superstore partners with CVC as it targets expansion of its branch network

CVC Capital Partners

Investment from CVC Capital Partners Asia V will improve the membership experience and accelerate new store rollouts

Landers Superstore (“Landers”), one of the fastest growing large-format retailers in the Philippines, has partnered with CVC Capital Partners (“CVC”) as it accelerates its expansion in the Philippine market. Landers has rapidly grown to a network of five branches with more than 45,000 sqm of retail space in Metro Manila and Metro Cebu. From its opening in 2016, Landers has consistently surpassed its revenue targets, and in 2020 achieved year-on-year growth of 22% despite the pandemic.

The market has responded positively to Landers’ membership-only value centric approach. From offering the best deals at its Chevron branded fuel stations to attractive sales discounts for its members in store, the Landers formula of offering access to thousands of global products at reasonable prices is a winning one for Landers’ growing membership.

CVC has a long track record of strengthening companies’ operations in Asia, having been active in the region for over 20 years. CVC’s global network and partnerships provide Landers with access to key strategic components in the areas of supply chain, technology and retail operations, which will be important for its expansion plans. CVC is well positioned to support this strategy while its experience gained through the successful expansion of BJ’s Wholesale Club in the U.S. will be valuable.

Lowell L. Yu, Chairman of Landers Superstore commented: “Landers Superstore is ready for its next stage of growth which will take Landers’ proposition to more communities nationwide. We are excited to have CVC with us in bringing this world-class, global, shopping experience to more Filipinos in the years to come.”

Brice Cu, Managing Director and Head of the Philippines for CVC Capital Partners said: “Landers’ unique and outstanding value proposition to its members has allowed it to build a strong brand in a short period of time. CVC will leverage its global platform and our extensive experience operating and investing in the consumer and retail sectors to help Landers continue to deliver first class services to all its members. We are delighted to partner with the management team to embark on Landers’ next stage of growth.”

This is the second investment CVC has announced in the Philippines in the last six months, following the investment in Fast Logistics Group in December 2020.

Categories: News

Tags:

Consortium around EMERAM and Gimv to support German digital learning platform sofatutor in the next growth phase

GIMV
Topic: Investment

  • sofatutor is the most comprehensive digital education platform for schoolchildren in the German-speaking countries
  • Number of users has grown during a highly successful 2020 to more than 1 million schoolchildren
  • Additional digital education offerings and integration within in-school activity to be key drivers of future growth

EMERAM Capital Partners, one of the leading investment companies in the German-speaking region with a focus on medium-sized companies, is heading an investor consortium together with the investment company Gimv, amongst others, to lead digital company sofatutor into the next growth phase. The consortium will thus take on from the previous share owners. sofatutor is regarded as one of Germany’s leading digital education platforms for years one to twelve (K-12). Through additional innovative offerings, sofatutor plans to meet the demand for online learning tools and improve access to first-class education. In this way, the strong growth of the past years is to be continued into the future.

Founded in 2008, the company currently has more than one million users. Moreover, sofatutor is used by more than 25 percent of all teachers across Germany and has been introduced in the Federal States of Saxony and Bremen. sofatutor therefore sees itself positioned as the most comprehensive provider for digital learning tools in Germany, Austria and Switzerland, a market with a total of more than 11 million schoolchildren.

The sofatutor product and service portfolio covers a wide range of more than 11,000 videos, as well as exercises and worksheets for 14 different school subjects. Students can access material conveniently via the web-based platform or via sofatutor app and can chat about homework tasks in real-time with qualified teachers.

Dr. Christian Näther, founding partner of EMERAM, says: “High-quality education has an important societal role in any country. We are therefore pleased to support sofatutor in extending its educational offering still further. Sofatutor is already seeing huge demand for its digital learning tools, which has been boosted still further by home-schooling and the pandemic. We would like to continue the success story.” Matthias Obermeyr, Partner at EMERAM, adds: “Thanks to its comprehensive, digital offering, its strong innovation and attractive value proposition, sofatutor already occupies a strong market position. Extending the digital product range and expanding digital learning models offers significant further growth potential.”

Stephan Bayer, CEO of sofatutor and the company’s founder, explains: “With more than one million users and the largest network of teachers integrating sofatutor’s content into their lessons, sofatutor has long been the leading provider of digital learning applications. With the new consortium of investors, we again have a strong group of investors at our side who will accompany and support the company with their expertise in the next growth phase. Innovative digital learning tools will continue to be our DNA into the future. We want to support schools, teachers and schoolchildren not only after school but also by offering digital learning content for school daytime activity.”

Dr. Sven Oleownik, Partner and Head of Germany at European investment company specialized in growth companies, Gimv, comments: “With its investment in sofatutor, Gimv confirms its commitment to investing in future-oriented companies along the fundamental trends of digitalization, sustainability and convenience, and is supporting together with EMERAM an excellently led company which, with its digital offering, is perfectly addressing the United Nations goals with respect to high quality education and digital innovation.”  Koen Bouckaert, Managing Partner and Head Consumer at Gimv, adds: “We are therefore particularly pleased to allocate part of our recently issued sustainable bond towards sofatutor’s growth story, thus making a significant contribution to both the company and society at large.”

The investor consortium around EMERAM and Gimv was advised in the transaction by IEG Investment Banking Group (M&A), GLNS and McDermott (Legal), PwC (Financial, Tax and Commercial) and Xperify (Tech/Marketing).

The transaction is subject to the usual conditions, including approval by the competition authorities. Further financial details are not to be disclosed.

Read the full press release:

English – French – Dutch – German
Gimv
Karel Oomsstraat 37, 2018 Antwerpen, Belgium
www.gimv.com

Categories: News

Tags: