Mid Europa Partners readies software developer Intive for sale

The sale process is expected to start in Q4 2022, two of the sources said.

Intive is aiming for EUR 35m EBITDA this year, one of the sources said. Another gave a tentative EUR 30m-EUR 40m EBITDA range, while the third said the figure is "closer to EUR 30m".

Specialising in software development and digital solutions for corporate clients, Intive could interest sector investors, including private equity-owned, outsourced software development peers, one of the sources said. Another of the sources mentioned parties from the US and German sector players.

Valuation-wise, Intive could change hands for 12x EBITDA, one source said, while another said that a 10x-11x multiple would be more reasonable. Much of Intive's growth under MEP's ownership came from bolt-on deals, with relatively modest organic development, this source added.

MEP originally acquired Intive in December 2018 for EUR 100m, as reported. CEO Gurdeep Grewal told Mergermarket in May 2021 that the business would consider its next steps, which could include gaining an investor, a merger or a stock market listing, by the end of 2022.

Its acquisition history under MEP's stewardship includes the December 2021 purchase of the New York-based software developer Spark Digital, and buying US- and LatAm-focused SimTLiX in November 2021 and Ireland's Ammeon in May 2021.

While Intive is a well-diversified company with a global client base, its relatively strong exposure to the automotive sector could deter some potential bidders, one source said.

Headquartered in Munich, Intive has a global presence with several locations in Poland and in Germany as well as offices in Romania, Argentina, Ukraine, the UK, Ireland and the US.

Intive and Goldman Sachs declined to comment. MEP did not return requests for comment.

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