Hellman & Friedman sells Finanzcheck to VC-backed Smava

Harriet Matthews
15 February 2021

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Hellman & Friedman (H&F) has sold Germany-based online consumer finance marketplace to market peer Smava, which is backed by VCs including Earlybird Venture Capital.

The transaction is expected to be completed by the end of Q1 2021.

Finanzcheck CEO and founder Moritz Thiele and COO Andreas Kupke are to step back from their management roles following the deal.

According to a report from Handelsblatt, the transaction values Finanzcheck at around €200m.

Smava said in a statement that the acquisition is being financed by existing investors including Earlybird Venture Capital, Kreos Capital, Runa Capital, Verdane Capital and Vitruvian Partners. New investor Proventus Capital Partners is also backing the deal.

Smava has received more than €197m in funding since its foundation in 2007. Its first funding round in May 2007 saw Earlybird lead a €4m round for the company, deploying equity via Earlybird IV, which held a final close in August 2008 on €127m. Its latest round took place in May 2020, when Smava raised €57m in equity and debt.

H&F acquired Finanzcheck as part of its acquisition of AutoScout 24 in December 2019 via its Speedster Bidco vehicle, which is to acquire a minority stake in Smava as part of the sale of Finanzcheck, according to a statement.

Unquote sister publication Mergermarket reported in February 2020 that H&F was likely to sell Finanzcheck, given that the company is loss-making. Mergermarket subsequently reported in October 2020 that H&F had mandated Macquarie to sell Finanzcheck and that the sale had begun in summer 2020. The report said that Smava was engaged in the process, as was ProSiebenSat's Verivox.

Previous funding
TA Ventures invested in Finanzcheck in August 2012, according to Unquote Data.

Highland Europe invested €10m in Finanzcheck in January 2015.
In March 2014, NWZ-Verlag and B-to-V Partners invested in the business.

HarbourVest led a €33m series-C round for Finanzcheck in April 2016, joined by Acton Capital Partners and Highland.

Scout24 acquired Finanzcheck in a deal valued at €285m in 2018, in a deal that saw its previous VC backers sell their stakes in the business.

H&F acquired AutoScout24 from Scout24 in 2019 in a deal that also included subsidiaries Finanzcheck and FinanceScout24. H&F acquired the businesses via its Speedster Bidco vehicle in a deal valued at around €2.9bn. At the time, H&F was deploying equity via H&F Capital Partners IX which held a final close in October 2018 on $16bn.

Company
Founded in 2011 and based in Hamburg, Finanzcheck is an online consumer finance platform that allows users to find and compare loans. The company employs 320 staff. Finanzcheck reported revenues of €38.2m in 2018, according to an annual report from previous owner Scout24. Finanzcheck reported negative EBITDA of €4.4m in the same year.

People
Hellman & Friedman – Blake Kleinman (partner).
Finanzcheck – Moritz Thiele (founder, CEO).
Smava – Alexander Artopé (co-founder, CEO).

Advisers
Acquirer – Citi (corporate finance); GLNS (legal).
Vendor – Macquarie Capital (corporate finance); Freshfields Bruckhaus Deringer (legal).