Oakley Capital to reap up to 19x on Verivox sale

ProSiebenSat.1 will pay an initial €170m for the business (based on a €200m enterprise value), with a further €50m dependent on Verivox's financial performance in 2015, to secure an 80% stake in the company. Oakley Capital will continue to hold a stake in the business via its second fund.

Oakley's first fund, which had been invested in Verivox since 2010, stands to reap a 15x multiple on the deal, which equates to a 73% IRR. Should the additional €50m consideration be paid out, returns would rise to 19x and 76% respectively.

Oakley Capital Private Equity I, the GP's first fund, is now fully invested and following the Verivox disposal will have generated a gross money multiple of 2.3x and an IRR of 39%. The fund closed on €350m in 2007, despite having originally set out to raise €550m. It has a 10-year lifespan and holds three remaining portfolio companies: Time Out, Educas and Broadstone.

Its successor, which was launched in 2013 and reinvested as part of the deal with ProSiebenSat.1, had raised €454m in commitments as of April 2014, with a final close initially planned for the end of last year.

ProSiebenSat.1, a listed German broadcasting group, was owned by KKR and Permira between 2007 and 2012. The duo jointly acquired a 50.5% stake for €3.1bn in 2007, buying a further 12% stake shortly after for more than €500m. Having divested two divisions in successive €1bn+ trade sales, the private equity backers set about selling various stakes via the Frankfurt Stock Exchange in 2013, reaping more than €2.3bn. KKR and Permira fully exited the company in January 2014, netting a final €1.3bn in the process.

Previous funding
Oakley acquired 51% of Verivox in 2010, comprising a 49% stake from Independent News and Media for €16m, and a further 2% from the company's founders. The company was acquired with equity from the Oakley Capital Private Equity I vehicle with no material net debt after the repayment of a €2.3m shareholder loan to Independent News and Media from available cash resources. A €5m bridge loan also contributed to financing the buyout.

The GP had became aware of the company through media coverage about the vendor undergoing restructuring and aiming to sell non-core assets, unquote" reported at the time. After winning the auction run by Greenhill, which saw several other price comparison sites bid for the business, the investor set upon backing the company's organic growth.

Oakley and the company stated that Verivox succeded in consolidating its position in the German energy price comparison market in the past six years. The business also expanded its model to cover the car insurance, mortgage and loans markets.

Company
Founded in 1998 and based in Heidelberg, Verivox operates a price comparison platform for consumers, covering the energy, insurance and loans markets among others. The business also operates a search engine for real estate properties and second-hand cars.

Its financials have not been disclosed for the time being. At the time of Oakley's acquisition in 2010, Verivox had a forecast EBITDA in excess of €10m and employed 170 people.

People
Mark Joseph and Peter Dubens worked on the deal for Oakley Capital. Chris Öhlund is CEO of the Verivox Group.

 

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• Topics
• DACH
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• Oakley Capital
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• Unq2015July