Avedon sells CycloMedia to Volpi in €100m deal

Management, having held a minority stake in the business under Avedon's onwnership, has reinvested in CycloMedia alongisde Volpi. 

The deal generated a 5x return for Avedon, Unquote understands.

Volpi's average ticket size across its four deals to date has been €60m, with the investment in CycloMedia consistent with this.

The firm's maiden fund, Volpi Capital Fund I, closed in April 2018 with commitments of €185m, was used for the transaction. The GP typically invests €25-75m of equity in businesses with enterprise values in the €50-200m range and seeks to drive growth through international expansion and consolidation.

Volpi plans to support CycloMedia in its international expansion, particularly in the US. In addition, Volpi will foster the company's buy and build strategy and enhance the business' governance and operations.

Previous funding
Avedon, previously named NIBC Capital Partners until it span out from the Dutch Bank NIBC in 2011, first backed the business in 2008, providing €20m of equity funding. 

Avedon subsequently acquired a majority stake. In 2014 the GP injected €13.8m in to the business in order to fund its international expansion strategy.

Under Avedon's ownership, CycloMedia achieved organic growthin the US, where revenues have doubled annually in the last 2 years, and in Germany, establishing and scaling local operations. Overall, CycloMedia has doubled its sales over the last 4 years.

Company
Founded in 1980 and headquartered in Zaltbommel, CycloMedia provides geospatial data and information services by creating virtual representations of large cities. Its Cycloramas product provides 360-degree panoramic photos of street-level environments. Its technology is currently used in government, public safety and security markets, as well as in construction, infrastructure management and insurance.

Its customer base includes local governments in New York City, Washington DC, Amsterdam, Rotterdam, Frankfurt and Stuttgart, as well as corporate customers. Employing around 140 employees, the business generated sales of €30m in 2017.

People
Avedon Capital Partners - Michel Verhoog (partner).
Volpi Capital - Crevan O'Grady (partner).
CycloMedia - Frank Pauli (CEO).   

Advisers
Equity - Allen & Overy (legal), PwC (financial due diligence).
Company - Arma Partners (corporate finance).

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