Paragon Partners buys Novagraaf from Gilde

Alice Tchernookova
01 February 2017

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German private equity firm Paragon Partners has bought a majority stake in Amsterdam-based intellectual property adviser Novagraaf in an SBO from Gilde Buy Out Partners.

According to several sources, the entreprise value in the deal is in the region of €55-80m.

Gilde Buy Out Partners exits its position as majority shareholder in Novagraaf nearly 10 years after acquiring the business in an SBO form Halder and NIB Capital Private Equity.

Paragon will continue to grow the business by investing in new staff, technology and services, the GP said in a statement. The group will also pursue its international expansion, having recently launched operations in China, Japan and the US.

Paragon was not available for comment at the time of writing.

Previous funding
In May 2007, Gilde acquired a majority stake in Novagraaf through its Gilde Buyout Fund III (closed on €600m in 2006), with mezzanine debt provided by Nordic Mezzanine.

The management and key employees also invested in the transaction alongside the GP, which planned to grow the group with add-on acquisitions and business partnerships.

In 2000, Halder and NIB created a specialist European intellectual property rights company through the acquisition and subsequent merger of groups Markgraaf and Novamark. Markgraaf was acquired via the newco Markgraaf Holding from parent Vedior, while Novamark was privately held.

While Halder and NIB were understood to have jointly invested €25m in Markgraaf, details surrounding the Novamark transaction were undisclosed. The venture capital firms took a joint majority stake in the new group, with additional equity provided by the management.

Company
Founded in 1888 and based in Amsterdam, Novagraaf is an adviser on European intellectual property services, offering consultancy and registration services for trademarks, patents and other intellectual property rights.

With offices in the Netherlands, France, the UK, Belgium and Switzerland, the group services a global customer base including groups such as France Telecom, Dior, Xerox, Nokia and Manchester United. Novagraaf currently employs 400 people and posted a €70m turnover in 2015.

People
Paragon Partners – Dr Krischan von Moeller (co-founder/ managing partner).

Adviser
Equity – Marks Baughan (corporate finance).