CDPQ-backed Datamars acquires Simcro from Riverside

The deal brings a five-year holding period for private equity firm Riverside to an end, after first investing in Simcro in 2013. Under the GP's ownership, Simcro established new offices in the US, Asia and Latin America to complement the existing footprint of the business in New Zealand, Australia, the UK and the rest of Europe.

The products and services delivered by Datamars and Simcro are complementary, and the existing client base of both companies is expected to be better served with a more extensive network of services, sales, distribution channels and partners, according to the firms.

Previous funding
A consortium of investors led by Iris Capital and Invision and including Cornerstone Capital and Universal Capital Partners invested €12m in May 2005 to acquire the majority of Datamars from the founding investors Innovent Capital and Zurmont Capital, as well as founder and CEO Parvis Hassan-Zade.

Swiss private equity firm Vinci Capital led a financing round for the company for $8.9m along with the existing investors in November 2006. The financing was carried out by Renaissance PME and a Swisscom investment vehicle, Mona Lisa, both managed by Vinci Capital.

Columna Capital acquired a 35.7% stake in Datamars from Invision and Cornerstone in August 2011. This transaction created liquidity for the exiting shareholders while allowing the management to continue Datamars' growth and development.

Columna acquired a majority stake in Datamars in March 2014 from Iris and Vinci. The deal was valued at $83m.

CDPQ backed the management buyout of Datamars from Columna in March 2017. Post-transaction, CDPQ became the company's largest shareholder, alongside Datamars' senior management and Columna, which reinvested in the company.

Company
Founded in 1993 and headquartered in Hamilton, New Zealand, Simcro provides delivery systems for the animal health industry to accurately administer vaccines and other medications to animals. It also operates an office in Gosford, Australia.

Founded in 1988 and headquartered in Lugano, Switzerland, Datamars provides radio frequency identification (RFID) technology for tracing and tracking animals. The company employs 900 people with offices in Europe, Asia and the US.

People
The Riverside Company – Steven Spiteri (partner).
Datamars – Klaus Ackerstaff (CEO).
Simcro – Roger Wakelin (CEO).

Advisers
Vendor – First NZ Capital (corporate due diligence); Russell McVeagh (legal); KPMG (financial due diligence, tax).

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• Topics
• Portfolio management
• Exits
• DACH
• Healthcare
• Switzerland
• Secondary buyout
• Build-up