EdRip's Eurogiciel acquires PE-backed Alyotech

Alice Tchernookova
10 October 2016

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Business consultancy Eurogiciel, backed by Edmond de Rothschild Investment Partners (EdRip), has acquired pricate-equity-backed technology consultants Alyotech in a bolt-on acquisition.

The deal marks an exit for Alyotech's existing investors, including BPI France, Iris Capital, Ace Management, Galileo Partners and Nextstage AM.

The acquisition was made with Winch Capital 3, a €300m FCPI fund also managed by EdRip, and aims to bring Eurogiciel additional expertise within the field of digital projects and systems, the GP said in a statement. Eurogiciel founder Daniel Benchimol also invested as part in the transaction.

Eurogiciel will add Alyotech's €50m turnover and a 650-strong workforce to its organisation. The acquisition marks a first step in the group's international roll-out and growth strategy, company CEO Yvan Chabanne said in a statement, and is to be followed by other transactions aimed at developing the group's global presence.

The new entity is aiming to hit a €200m turnover and a 2,000-strong workforce by 2019.

Previous funding
In September 2006, Ace committed up to €7m for the development of Alyotech on behalf of Aerofund and Financière de Brienne. At that point, €200,000 in working capital and €2.5m in convertible bonds had been provided by Ace, with the remainder to be issued in two tranches at the end of 2006 and around March 2007. Following the agreement, Alyotech CEO Carlos Bedran retained a 55% equity stake in the company. Ace joined existing investors Aurel Nextstage and Galileo Partners, which had injected €9.5m into the company in 2005.

In December 2006, Desjardins Capital committed C$5m to Alyotech's Canadian subsidiary. The following year, Iris Capital and CDC Entreprises each contributed €5m, provided in several tranches, mainly in the form of convertible securities.

In July 2008, Iris led a new €4m capital increase; Aurel NextStage, Galileo, Ace and the management also invested, providing around half of the total capital. Iris invested the remaining half through its fund Iris Capital II, together with CDC Entreprises' co-investment fund. The new financing brought the total raised by the Alyotech group to more than €34m. Finally, in July 2010, Aurel NextStage, Galileo, Ace and Iris jointly re-invested €4m in the group.

In March 2015, EdRip invested in the buy-in management buyout (BIMBO) of Eurogiciel, taking a majority stake. CIC Sud-Ouest led a banking pool to provide senior debt for the transaction, while mezzanine financing was arranged by Trocadero Capital.

Company
Established in August 2005, Paris-based Alyotech provides advice on technology and the execution of R&D projects for corporate clients in a range of sectors including telecommunications, transportation, banking, insurance and aeronautics. The group registered a €50m consolidated turnover in its last financial year and currently employs 650 people.

Established in 1989, Eurogiciel provides a range of business support services across project management, quality management, systems engineering and information management. Based in Toulouse, Eurogiciel employs 1,200 people across eight consultancies in France, as well as offices in Germany, the UK, Belgium, Spain, Canada and the US. It recorded a consolidated turnover of €83m in 2016.

People
Edmond de Rothschild Investment Partners – Antoine Le Bourgeois, Laurent Tourtois (associate directors); Tanguy Tauzinat (associate).
BPI France – Ronan Lefort (investment director); Fabienne Gérard (legal consultant).
Iris Capital – Curt Gunsenheimer (partner).
Ace Management – Xavier Herrmann (partner).
Galileo Partners – François Duliège (partner).
Nextstage AM – Vincent Bazi (managing partner); Julien Potier (investment director).

Advisers
Equity – Squire Patton Boggs, Charles Fabry, Maeva Domini (legal); Mazars, Eric Gonzales, Hervé Kerneis (financial due diligence).
Vendor – Oaklins Aelios, Pierre Dropsy, Thibaut de Monclin, Antoine de Bardies (corporate finance); De Pardieu Brocca Maffei, Jean-François Pourdieu, Alexandre Bankowski, Sandra Benhaïm (legal); Redlink, Hervé de Kervasdoué (legal).