3i to buy majority stake in xSuite from Pinova

The investment comes on back of an auction process and will see 3i deploy capital from its balance sheet, a source familiar with the situation told Unquote.

Germany-based Pinova acquired a majority stake in the company, formerly WMD Group, via its Pinova Capital Fund 2 in 2018. The GP is reinvesting in xSuite via the same vehicle. The EUR 180m fund, which held a final close in January 2017, invests in technology-driven SMEs operating across the software, internet, chemicals, materials, high-tech components and equipment sectors with sales between EUR 10m and EUR 75m.

Silicon Valley Bank provided debt for the transaction at the time, according to Unquote Data.

3i will support xSuite to build on its emerging presence in the US market and scale its North American operations, according to a press release. The GP will looks to accelerate the company's transition to more subscription software revenues.

The investment follows 3i's recent exit of provider of data management software Magnitude in October 2021 to insightsoftware, a provider of reporting, analytics, and performance management solutions.

Under Pinova's ownership, xSuite managed to get a leading position in the software accounts payable invoice automation (APIA) software market, which is forecasted to achieve CAGR of over 10%, driven by the digitisation of workflows and a focus on reducing labour costs, according to the press release.

3i and Pinova Capital declined to comment.

Company
Headquartered in Ahrensburg and Hamburg, xSuite is a APIA specialist focused on the SAP ecosystem. It enables more than 1,200 clients in over 60 countries to digitalise, streamline and automate invoice processing. The company has more than 230 employees in corporate offices in Germany, Denmark, the Netherlands, Singapore, Slovakia, Spain and the US.

People
3i − Ulf von Haacke (head of Germany).
Pinova Capital − Joern Pelzer (partner).
xSuite − Matthias Lemenkühler (CEO).

Advisers
Equity − McKinsey (commercial due diligence); Latham & Watkins (legal); Alvarez & Marsal (financial due diligence); EY (tax).
Vendor − Houlihan Lokey (M&A); Deloitte (financial due diligence); Poellath (legal); Strategy End (commercial due diligence); Taxess (tax).

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