HIG sells Infinigate to Bridgepoint

The deal is subject to competition authority approval.

Following the transaction, Infinigate's management team and its strategy will remain in place, according to a statement.

The deal values Infinigate in the €200-400m region, a source close to the situation told Unquote.

Bridgepoint is currently deploying equity via Bridgepoint Europe VI, which held a final close in December 2017 on €5.7bn. The fund deploys equity tickets of €125-500m.

Unquote sister publication Debtwire reported that the deal was conducted via an off-market process, with the business sold based on EBITDA of €30m. The deal is currently all-equity, Debtwire reported, with Bridgepoint expected to add leverage at a later date.

Bridgepoint said in a statement that it will aim to develop the company's relationships with its resellers and to expand the company's service offering.

HIG invested in Infinigate in February 2017 via HIG Europe Capital Partners II; the fund closed in July 2013 on €825m. The vehicle was 79% deployed as of March 2020, according to Unquote Data, and deploys equity tickets of €25-40m. UBS provided debt to back the buyout.

HIG aimed to assist the company with its international expansion via a buy-and-build strategy, the GP said in a statement issued at the time of the investment. During HIG's investment period, Infinigate made a number of bolt-ons, including Netherlands-based Crypsys in January 2018 and Germany-based Acmeo in October 2018. The company's revenue also doubled, HIG said in a statement.

Company
Infinigate provides cybersecurity software and infrastructure services via its partner network. Its services include identity and access management, wireless infrastructure management and client security. The company was founded in 1996 and is headquartered in Rotkreuz, Switzerland, with operations in 11 European countries in total and 450 employees.

Infinigate reported revenues of €570m in the 2019/20 financial year up to 31 March, an increase of 11% on the previous year. The business expects to achieve turnover of €630m for the 2020/21 financial year, according to a statement, compared with turnover of €296m at the time of HIG's initial investment.

People
HIG Europe – Holger Kleingarn (managing director).
Bridgepoint – Christopher Brackmann (partner, head of DACH investment); David Nicault (partner, global head of digital, technology and media).
Infinigate – David Martinez (founder, chairman of the board); Klaus Schlichtherle (CEO); Olaf Demuth (CFO and chief investment officer).

Advisers
Equity – Allen & Overy (legal); EY (financial due diligence, tax); PwC (commercial due diligence).
Vendor – Milbank (legal).

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