Carlyle exits VWD for €130m

Katharine Hidalgo
12 April 2019

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Carlyle Europe Technology Partners has agreed to sell information software provider VWD Group (VWD) to strategic buyer Infront for €130m.

VWD was a Carlyle Europe Technology Partners II portfolio company; the fund closed on €530m in 2008, and invested between €20-60m in small- and mid-cap buyouts.

The combined company plans to reach a wider customer base, explore cross-company sales opportunities and capture cost synergies from consolidating data feeds and other efficiencies.

The transaction will be financed by a bond issue of €105m and an equity rights issue of approximately €25m, both fully underwritten. The senior secured bond issue of €105m is fully underwritten by a syndicate consisting of ABG Sundal Collier and Danske Bank, Norwegian Branch. The bond will have a bullet repayment, a tenor of four years and a floating interest rate.

The rights issue is fully underwritten by a syndicate consisting of ABG Sundal Collier, Danske Bank, Norwegian Branch and Infront's two largest shareholders, its chief innovation officer and its CEO. Infront's CFO, the chairman of the board and a member of the board of directors will also participate in the syndicate.

Of VWD's €68.1m revenues, 98% was recurring through a software-as-a-service delivery model. The company reported adjusted EBITDA of €11m. In 2011, the group reported sales of €81m and had 465 employees.

Previous funding
A consortium of Cornerstone Capital, the Hopp family office and Edmund J Keferstein completed the buyout of VWD in 2004.

Deutsche Balaton acquired Cornerstone's 39% stake in the company in 2011.

In 2012, Carlyle wholly acquired VWD for 280 euro cents per share. The offer price was said to correspond to a premium of approximately 35% on the weighted average market price at the time.

Company
VWD, founded in 1949, has approximately 400 employees and 14 locations in six countries. It provides technology and data services and software for the wealth management industry. Its product range includes data services, distribution systems, portfolio management and regulatory technology services.

People
Carlyle Europe Technology Partners – Thorsten Dippel (managing director).
Infront – Kristian Nesbak (CEO, co-founder); Max Hofer (CFO).
VWD – Shiva Ramabadran (CEO).

Advisers
Vendor – Raymond James (M&A).
Acquirer – ABG Sundal Collier (M&A, debt advisory); Danske Bank (debt advisory); Selmer (legal).