Emeram, Gimv acquire Sofatutor; VC backers exit

The transaction is expected to close by the end of April 2021.

The exit was made via a structured process run by GCA Altium.

The cooperation between Gimv and Emeram on the deal came about due to the pre-existing good relationship between the two parties, a source close to the situation told Unquote.

Luxembourg-headquartered CSP Investment (Credit Solutions Partner) also participated in the deal, according to a statement from buy-side legal adviser McDermott Will & Emery. CSP provides mid-market companies with financing in the form of long-term debt, subordinated debt, mezzanine debt, silent participations and minority equity stakes.

The deal marks an exit for Sofatutor's existing shareholders, according to a statement from IBB Ventures, which first invested in the business in 2009 alongside Kizoo Technology Capital. Acton Capital and Frog Capital have also sold their stakes, according to the same statement.

Frog Capital confirmed in a statement that the sale has generated returns of 30% IRR for the firm.

Emeram is currently deploying equity via its debut fund, which held a final close in January 2015 on €400m and then raised an additional €50m in commitments via a GP-led process in April 2019. The fund generally invests in DACH-based companies with revenues of €20-150m. The GP is expected to launch its second fund in 2021.

Previous funding
Kizoo Technology Capital and IBB backed a seed round for Sofatutor in 2009.

IBB and JCMB invested in Sofatutor in January 2010. The company subsequently launched its online platform.

Acton led a €5m round in September 2012. Partner Christoph Braun subsequently took the role of chairman on the company's advisory board.

Educational book publisher Cornelsen led a €3.5m series-C round in August 2014, joined by existing investors Acton, IBB and JCMB.

Frog Capital led a €3m series-D funding round for Sofatutor in February 2018. Existing investors Acton, JCMB and IBB also took part, as well as Cornelsen.

Company
Founded in 2008 and headquartered in Berlin, Sofatutor is an online platform for videos, exercises and worksheets for online learning, covering 14 school subjects and aimed at primary and secondary school students in the DACH region (grades one to 12 in the German school system). The platform also provides a real-time online chat facility for students to seek help with homework from qualified teachers. Sofatutor is used by around 25% of teachers in Germany and around one million schoolchildren, according to a statement.

A statement from IBB said that 2020 had been the most successful year for Sofatutor so far. According to the company's latest publicly available accounts, it posted revenues of €13.9m in 2019, compared with €11.2m in 2018, marking a 24% increase. Sofatutor's EBITDA also increased in the same period; it reported negative EBITDA of €1m in 2019, compared with negative €1.6m in 2018. The company employed 103 staff in 2019.

People
Sofatutor – Stephan Bayer (founder, CEO); Colin Schlüter (chief technology officer, chief operating officer, managing director); Arne Strawe (chief marketing officer, managing director).
Gimv – Sven Oleownik (partner, head of M&A Germany); Koen Bouckaert (managing partner, head of consumer).
Emeram Capital Partners – Christian Näther (founding partner); Matthias Obermeyr (partner).
IBB Ventures – Rayk Reitenbach (investment director).
Frog Capital – Jens Düing (senior partner).
Acton Capital Partners – Christoph Braun (partner).

Advisers
Vendor – GCA Altium (M&A); SMP (legal); GOF (tax).
Equity – IEG (corporate finance); GLNS (legal); McDermott Will & Emery (legal), PwC (financial due diligence, commercial due diligence, tax); Xperify (technology due diligence).

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• Topics
• Buyouts
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• DACH
• Technology
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• Germany
• Gimv
• Frog Capital