Ufenau sells Swiss IT Security to Triton for 12x money

Harriet Matthews
12 July 2021

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Ufenau Capital Partners has sold its stake in Swiss IT Security (SITS) in a secondary buyout to Triton, netting more than 12x money on the exit and an IRR of more than 150%.

The company's management will remain invested in the business.

Unquote sister publication Mergermarket first reported in December 2020 that Ufenau had mandated Stifel to sell the business. The company was marketed based on CHF 28m (EUR 25.8m) and was expected to be valued at approximately 15x EBITDA, implying a valuation of around CHF 420m (EUR 386.9m). First-round bids were expected at the start of June 2021.

The deal values the company at more than EUR 450m, a source close to the situation told Unquote.

Ufenau acquired Swiss IT Security in 2017. The GP invested via Ufenau V, which held a final close in October 2016 on EUR 227m. backing small-cap, asset-light businesses with revenues of EUR 15m-150m. Ufenau typically provides equity tickets of EUR 5m-20m.

During the investment period, the company's revenues increased from CHF 10m to CHF 140m (EUR 9.2m to EUR 130m). Its EBITDA stood at around CHF 2m (EUR 1.8m).

As part of its buy-and-build strategy, the business made 17 add-ons in the fragmented IT security market in the DACH region, Belgium and the Netherlands. These included Germany-based AV-Test in Febeurary 2021, which increased the company's revenues to CHF 115m, as reported.

Ufenau is expected to launch its seventh fund in 2022. The vehicle has a target of EUR 800m and will follow the same strategy as its predecessors, according to Unquote Data.

Triton is investing via its fifth flagship fund which held a final close in January 2019 on EUR 5bn. The GP said in a statement that it intends to support the company's development into a pan-European cybersecurity service provider.

Triton and Ufenau declined to comment.

Company
Wettingen-headquartered SITS assists companies with the implementation of cybersecurity systems, as well as managed security and software. In addition, the company provides cybersecurity consulting services, serving corporations, SMEs and public organisations. SITS employs 500 staff in 19 offices in the DACH region, Belgium and the Netherlands.

People
Ufenau Capital Partners – Marinus Schmitt (partner).
Swiss IT Security – Philipp Stebler (CEO).
Triton – Nadia Meier-Kirner (co-head of business services, partner).

Advisers
Vendor – WalderWyss (legal); Goerg (legal); Sancovia Corporate Finance (financial due diligence); Roland Berger (commercial due diligence); Stifel (corporate finance).