Ardian's RGI buys French competitor Kapia

Amedeo Goria
29 September 2016

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Ardian’s Italy-based software developer RGI Group has fully acquired French competitor Kapia Solutions in an add-on deal.

According to a source close to the matter, RGI financed the transaction through a debt increase from the company's existing creditors led by Unicredit, alongside Ge Capital Interbanca, Banca Popolare di Milano and Banco Popolare.

Ardian supported the deal with a capital increase, through its Ardian Expansion III fund, alongside minority shareholder and RGI's founder Paolo Benini.

Following the transaction, Ardian will retain a 67% stake in the business, while Benini will own an 18% stake. Concurrently, RGI's and Kapia's management teams acquired a 8% and 7% stake in the business, respectively.

Kapia's management team will own a 7% stake, alongside Benini, who will retain a 18% stake, and RGI's management team with a 8% stake.

The deal is part of the company's international expansion plan, put in place by Ardian following the acquisition of a controlling stake in 2014.

At the time of Ardian's acquisition, the Ivrea-based company posted a turnover of €50m, while it generated €55m of revenues in 2015, according to a statement.

Following the acquisition, the merged group will manage a staff of 700 people and will continue to pursue strategic acquisitions across the European market to boost its expansion.

Previous funding
Ardian acquired a 72% stake in RGI in May 2014 from 21 Investimenti via its Ardian Expansion III fund. The deal saw RGI's founder retain a 20% stake in the company with the remaining 8% stake retained by the management. According to unquote" data, the transaction valued the business at around €80m.

In 2009, 21 Investimenti and Sirius Holding, the holding company of Paolo Benini, acquired the firm in a take-private transaction, completed via the joint holding company Afrodite. 21 Investimenti drew capital from its second vehicle, 21 Investimenti II, which closed on €280m in 2008. The buyers paid 201 euro cents per share, with reports valuing the firm at €46.6m including debt – around 4.2x the firm's EBITDA in 2008. The transaction was managed by Mediobanca. Prior to the delisting, the company had listed on the Italian bourse in 2004.

Company
Established in 2006, Kapia produces software focusing on life insurance, as well as pension and wealth management. The company is headquartered in Paris and has a presence in Lille and Luxembourg.

People
Ardian – Paolo Bergonzini (managing director).
RGI Group – Vito Rocca (CEO).
Kapia Solutions – Christophe Quesne (chiar).

Advisers
Buyer – Gattai Minoli Agostinelli (M&A)