Activa Capital buys Cityzen

The business will be merged with Activa portfolio company Medisys through a holding company that will control both businesses. Medisys will remain an asset of Activa Capital III fund, while Cityzen has been acquired via capital drawn down from Activa Capital IV fund.

Activa will own a stake of around 60% in the combined entity, while Turenne Capital (a minority shareholder in Medisys), the management team and Groupe UP will reinvest in the business and retain a minority stake.

Medisys president Guillaume Bouillot will be appointed as president of the combined group and Cityzen executive director Arnaud Duglué will become vice-president.

Employing 450 staff, the new group will generate revenues of around €45m and a 20% EBITDA margin, reaching an enterprise value in excess of €100m, the GP told Unquote.

The group will provide software to 80 French public counties, and around 11,000 private companies and local organisations.

This is the first deal made by Activa Fund IV, the firm's new €200m buyout fund, which recently held a first close on €100m. The vehicle targets businesses with enterprise values of €20-100m and deploys equity tickets in the €10-30m range, and up to €60m in co-investments.

In addition to the equity from the fund, senior debt was provided by Crédit du Nord, Crédit Agricole Provence Alpes Côte d'Azur, LCL BNP Paribas.

Company
Cityzen is a developer of medical and social software for private and public organisations.

The company generates annual revenues of around €35m.

People
Activa Capital – Christophe Parier, Alexandre Masson (managing partners).

Advisers
Acquirers – Hogan Lovells (legal); PwC (financial due diligence).
Vendors – Dentons (legal).

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