21 Centrale reaps 8.5x return in Digital Virgo exit

The transaction marks the entry of Sofival and BNP Paribas Développement, which have taken over 21 Centrale's participation in the group.

Digital Virgo CEO and founder Eric Peyre, alongside other managers, retains a controlling stake in the company.

The GP orginally held 50% of the group, which was reduced to 40% shortly before the sale due to shares being sold to the management in place, a source close to the deal told unquote".

The 8.5x returns on investment made through the exit are "way above" the GP's average returns, a source familiar with the matter told unquote".

The same source added there had been a number of interested parties for the sale within the sector itself, with different companies eyeing Digital Virgo; however, the GP preferred giving privilege to private equity investors.

Debt
Senior debt for the transaction was provided by BNP Paribas, HSBC France, LCL and Schelcher Prince Gestion.

Previous funding
21 Centrale's links with the group go as far as the 1990s, when it first invested in Digital Virgo's predecessor Jet Multimedia. The latter was subsequently bought by Neuf Telecom for FFr 6bn in 2000. In November 2008, a deal valued at €20m saw 21 Centrale return to Jet Multimedia.

The group has registered a 10% annual growth on average over the past few years, with turnover reaching €245m in 2015 (compared to €180m upon acquisition in 2008), achieving a 10% EBITDA margin.

This growth is mostly due to eight external acquisitions, which expanded the group's presence from eight countries in 2008 to 28 currently. Bolt-ons included Blue Orange in Slovakia in 2009; CellCast Media and Prizee.com in France in 2011; and Contento Media, which operates in Mexico, Brazil and Colombia, in 2012.

Digital Virgo also opened subsidiaries in Ivory Coast, Senegal, Brazil, Peru, Ecuador and Mexico.

Company
Digital Virgo, founded in 2008, distributes and monetises digital content, working across a network of 140 telecoms operators.

Based in Paris, the group offers a range of digital entertainment, such as games, videos, infotainment, social dating and mobile content. It also offers audience monetisation services for publishers and wireless carriers, providing payment solutions and digital marketing services.

People
Sofival – Jean-François Blas (deputy CEO); Christian Fine (CEO).
BNP Paribas Développement – Gilles Poncet (investment director).
21 Centrale Partners – Gerard Pluvinet (founding managing partner); Henry Huyghues Despointes (senior adviser).

Advisers
Equity – HPML, Thomas Hermetet (legal).
Vendor – Natixis Partners, Jean-Baptiste Marchand, Benjamin Giner, Philippe Charbonnier, Patrice Raulin (M&A) ; De Pardieu Brocas Maffei, Jean-François Pourdieu, Matthieu Candia (legal); KPMG, Bertrand Vigner (financial due diligence); PwC, Xavier Etienne, Sylvain Gagneux, Eric Bonneaud (legal).
Debt – Hogan Lovells, Sabine Bironneau (legal).

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Exits
• Buyouts
• France
• Technology
• France
• Secondary buyout
• 21 Centrale Partners
• BNP Paribas