Silver Lake invests in KKR-backed Exact

Silver Lake is investing in partnership with Exact's management, according to a statement, and the deal will see KKR retain its majority stake in the business.

The deal is expected to close in Q3 2021.

Silver Lake is currently deploying equity via Silver Lake Partners VI The fund held a final close in January 2021 on $20bn, surpassing its $18bn target. The fund makes investments of $400m-1.25bn.

A source close to the situation told Unquote that the rationale behind Silver Lake joining the investor base was based on previous successful cooperation between the two GPs on investments in high-growth technology companies. Joint deals include US-based web hosting business GoDaddy as well as Philips' semiconductor division NXP, which was ultimately listed in 2010 at a $1bn market capitalisation.

Exact has made a series of add-ons since its acquisition by KKR in 2019, focusing on Benelux-based businesses. Executives for the company told Unquote sister publication Mergermarket in October 2020 that the company would be unlikely to make acquisitions valued at less than €15-20m, but that KKR would be able to contribute more equity for larger deals, meaning that there is no upper limit to the size of potential targets.

Previous funding
Apax Partners acquired Exact in 2015 in a take-private deal that valued the business at around €730m, based on 2014 EBITDA of around €43.5m and an offer price of €32 per share. Exact was subsequently delisted from the Amsterdam Euronext stock exchange.

KKR acquired a majority stake in Exact in February 2019, investing via its long-term Core Investments strategy, through which the GP can hold investments for 10-15 years. Unquote sister publication Debtwire reported at the time that the deal valued Exact at around €1.65bn, while Mergermarket reported that the company posted EBITDA of around €80m.

Company
Enterprise and accounting software company Exact was founded in 1984 and is headquartered in Delft in the Netherlands. The firm produces software to allow SMEs to automate their accounting and financial processes, as well as their human resource management, enterprise resource planning and customer relationship management activities. The company employs 1,850 staff. It posts revenues of €320m, according to press reports, which KKR intends to increase to €500m by 2023 or 2024.

People
Silver Lake – Christian Lucas (co-head, EMEA).
KKR – Daniel Knottenbelt (partner, head of Benelux); Jean-Pierre Saad (partner, head of EMEA technology).
Exact – Paul Ramakers (CEO).

Advisers
Equity (Silver Lake) – STB (legal); NautaDutilh (legal).

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