Main Capital sells B+M to LEA for 3x money

Harriet Matthews
15 October 2021

Tweet
Facebook
LinkedIn
Google plus
Send to

Main Capital Partners has sold its stake in Germany-based banking and insurance software developer B+M in a secondary buyout to software investor LEA Partners, scoring returns of 3x money on the exit.

Main Capital acquired B+M from listed IT company Allgeier in December 2015. The GP deployed equity via Main Capital IV, which held a final close in September 2015 on EUR 85m.

According to contemporary press reports, the deal valued B+M at less than EUR 10m.

Main Capital said in a statement that the company's recurring revenues tripled during the investment period. The company also grew its headcount from 90 to 150 staff.

Carlsquare assisted Main Capital with the sale process, which saw LEA selected as B+M's new owner.

LEA is currently investing via LEA Mittelstandspartner Fund, which held a final close in May 2018 on EUR 200m. The fund backs DACH B2B software companies, focusing on financial technology and software development. The vehicle deploys equity tickets of EUR 10m-40m, according to Unquote Data.

The GP said in a statement that it intends to take advantage of the digitalisation opportunities in the banking and insurance sectors in the DACH region to support the company's growth.

The exit announcement comes shortly after Main Capital announced that it had raised EUR 1bn for its seventh flagship fund, as well as a further EUR 210m for Main Capital Foundation I, as reported. The GP expects to have made five exits by the end of 2021, as reported. Main Capital VI is expected to make one further platform deal before the GP will begin deploying from its successor vehicle.

Company
B+M provides software for the banking and insurance sectors that aims to digitalise their business processes. The company is headquartered in Melsdorf and has 150 staff. According to its latest publicly available accounts, the company posted revenues of EUR 10.1m in 2019, versus EUR 9.6m in 2018.

People
Main Capital Partners – Sven van Berge (partner, head of Germany).
LEA Partners – Philipp Hertel (partner).
B+M – Frank Mielke (CEO).

Advisers
Vendor – Carlsquare (M&A).