IK buys majority stake in GeoDynamics from Sofindev

Eliza Punshi
12 November 2020

Tweet
Facebook
LinkedIn
Google plus
Send to

IK Investment Partners has acquired a majority stake in Belgian software company GeoDynamics from Belgian private equity firm Sofindev and the management.

The company's founders, Peter Vermeesch and Stijn Stragier, will reinvest alongside the GP and retain a significant minority stake.

Belgian publication De Tijd reported in September this year that Sofindev was looking to sell its 50.1% in the company and had mandated EY for the process.

Unquote sister publication Debtwire reported in September that the company had an EBITDA of €8m, and that unitranche debt pitches for the company came in at more than 5x EBITDA, while senior stretch pitches were around 4.5x EBITDA.

IK is deploying equity from its IK Small Cap II fund, which closed on its hard-cap of €550m in February 2018. The vehicle typically acquires majority and selected minority stakes in companies with enterprise values of up to €100m across the DACH, Nordic, France and Benelux regions.

Sofindev exits the business four years after acquiring a majority stake in it.

Following the transaction, the business will continue to be led by both founders. The GP will help the company expand to the rest of the country and other adjacent regions.

Previous funding
Sofindev acquired a majority stake in GeoDynamics in April 2016, deploying equity from its Sofindev IV. The founders retained a minority stake in the company.

Company
Founded in 2004 and headquartered in Kortrijk, GeoDynamics is a software-as-a-service company serving 2,700 customers across construction, utilities, technical and manufacturing services, and local municipalities.

Its cloud-based platform allows customers to manage their vehicle fleets in real-time and account for mobile workers' time and activity registration. The company employs around 50 staff and generated EBITDA of €8m in 2019.

People
IK Investment Partners – Sander van Vreumingen (partner). GeoDynamics – Peter Vermeesch, Stijn Stragier (co-founders).
Sofindev – Jan Camerlynck (partner).

Advisers
Vendor – EY (M&A); Deloitte (financial due diligence, tax); Stibbe (legal).
Equity – Roland Berger (commercial due diligence); EY (financial due diligence, tax); Allen & Overy (legal); Kumulus (M&A); EY Parthenon (IT due diligence).
Company – Clifford Chance (legal).
Debt – White & Case (legal).