Oakley Capital (“Oakley”) is pleased to announce that, along with other co-investors, it has reached an agreement to sell its stake in WebPros Group (“WebPros”), a leading provider of web hosting automation software, to CVC Fund VII, generating overall gross returns to Fund III of 6.7x MM and c.140% IRR including previous distributions in under three years of ownership. The transaction is subject to customary regulatory approvals.
As part of the transaction, Oakley Capital IV (“Fund IV”) will invest $200 million alongside CVC Fund VII as a minority partner to benefit from long-term growth opportunities and new product developments.
Fund III originally invested in WebPros in 2017 and completed six acquisitions to create a product portfolio that addresses the full end-to-end customer lifecycle for shared hosting providers. The group now employs over 450 people across four continents and supports customers across the globe.
Fund IV’s investment in WebPros provides an opportunity for Oakley to continue its partnership with the management team and co-investors, and to benefit from the significant long-term growth potential in WebPros, through its extensive product roadmap. CVC Capital Partners brings a complementary skillset and deep relevant expertise to support the strategic vision of the business.
Arma Partners acted as WebPros’ financial adviser in connection with this transaction. Kirkland & Ellis International LLP and CMS Cameron McKenna Nabarro Olswang LLP acted as legal advisers to Oakley in connection with this transaction.
Peter Dubens, Managing Partner of Oakley Capital, commented:
“The success of WebPros to date is the result of many features that are typical of an Oakley investment. A partnership with entrepreneurs we have backed before, a buy-and-build strategy which tackled a high degree of complexity and a sector in which we have deep experience. We would like to thank the team for all their hard work in bringing the group together and look forward to supporting the business in its next phase of growth alongside CVC.”
Leif Lindbäck, Senior Managing Director at CVC Capital Partners, added:
“CVC has a proven track record of teaming up with entrepreneurs and like-minded investors to support and build better businesses. WebPros brings critical automation and security tools to hosting providers, web agencies and their customers. We look forward to partnering with Oakley Capital and working closely with the management team to continue building the leading global SaaS hosting platform for server management.”