Nordic private equity firm Reiten & Co has sold Norwegian IT company Basefarm to US-based ABRY Partners.
Reiten invested in Basefarm via its Reiten & Co Capital Partners VII fund in 2009, acquiring a 72% stake in a deal valuing the business at NOK 255m. The acquisition did not include a debt component.
Basefarm is ABRY's first investment in Norway. ABRY was founded in 1989 and it manages more than $3.5bn of capital.
The deal started taking shape following a series of inquiries and concrete proposals. Reiten's adviser Arma Partners helped organise incoming offers - Reiten got in touch with Arby Partners once the process got underway.
The sale was limited to a few potential buyers, mostly comprising tech-oriented firms. Reiten decided to sell because the deal created strong returns and it believes Arby is a good partner in going forward for Basefarm, the GP told unquote".
Basefarm delivers IT services through data centre facilities located in Oslo, Stockholm and Amsterdam. The company has increased its turnover by more than 20% per year since the 2009 buyout and will have a turnover of approximately $70m in 2012. Founded in Norway in 2000, it employs 270 people.
Grethe Viksaas is CEO of Basefarm. Christian Melby is a partner at Reiten & Co. Brian St Jean is a partner at ABRY.
Vendor – Arma Partners (Corporate finance).
Company - Wiersholm (Legal).
SEK 650m EV divestment comes after GP divested company’s German arm in January
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Fund's predecessor, Capzanine 3, also closed on its €350m hard-cap in 2013
Deal marks the second acquisition for the GP’s third vehcle, Quadrivio Private Equity Fund 3