Gimv to sell Thinkstep to trade

Sven Oleownik, head of Germany for Gimv, told Unquote: "It was a very transparent sale. We gave Sphera exclusivity at a relatively early stage in the bidding process, not because their offer was significantly higher than the next offer, but because it was clear they had the best strategic impetus. The founders and management team wanted to stay with Sphera also, and this was an important point for us."

The sale dropped from 30 interested parties down to a handful at an early stage.

The company was valued using a revenue multiple rather than an EBITDA multiple. 

When Gimv and Next47 first took minority stakes in the company, the founders were the majority shareholder; however, once the investors contributed more capital, all three group became minority shareholders.

During Gimv's holding period, Thinkstep switched from a licensing model to a software-as-a-service model, and expanded internationally. Oleownik said: "We structured the executive board and reduced the supervisory board from nine or 10 people to three to improve the decision-making process. We hired new people and redefined the entire strategy of the company. We also realised we needed a much higher level of transparency throughout the company, so we implemented controlling systems. We needed the right tools in place to achieve the right KPIs."

Sphera, a Chicago-based integrated risk management software company, plans to expand into Asia and Europe through this acquisition.

Next47 was previously known as Siemens Venture Capital.

Previous funding
Gimv invested in an €8m financing round for Thinkstep (then PE International) in 2010, acquiring a minority stake alongside Siemens Venture Capital. The firms each invested €4m.

Gimv initially invested using its evergreen vehicle. Oleownik said: "A huge advantage to being an evergreen investor is that it is very easy to invest additional money further down the line."

Oleownik said: "While it was clear that Siemens brought operational know-how, we initially became involved because Siemens was a shareholder but there was a concern that it would be too strong an investor. Siemens was also a client, so the company needed to look for a neutral investor who could think about making the company independent of Siemens and boosting shareholder value."

The two firms invested a further €10m in the business in 2014. Siemens Venture Capital made another investment in the company in 2016.

Company
Based in Stuttgart and founded in 1991, Thinkstep produces sustainability management software in three verticals: corporate sustainability, product sustainability and product compliance.

The company employs around 260 people, according to LinkedIn. It operates 20 offices around the world and counts Tesco, Sony, Unilever and BMW among its clients.

People
Gimv – Sven Oleownik (partner, head of Germany); Lisa Hengerer (associate).
Sphera Solutions – Paul Marushka (president, CEO).
Thinkstep – Jan Poulsen (CEO).

Advisers
Vendor – Marks Baughan Securities, John Jacobs (corporate finance); Gütt Olk Feldhaus, Sebastian Olk, Isabelle Vrancken, Karl Ehrenberg (legal).

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