Capza has exited its stake in IT consultancy Talan, as Towerbrook invests in the company.
The investment values the company at €280m, according to a report by Capital Finance.
Towerbrook is currently investing from its fifth-generation fund, which closed on $4.25bn in June 2018.
The company will remain majority owned by its management team.
With the fresh capital, the company will explore organic growth and strategic acquisitions in France and internationally to achieve its goal of a €1bn turnover by 2024. The group expects to achieve a turnover of €350m in 2020.
The transaction will be financed with a unitranche debt provided by Tikehau IM and CVC Credit Partners.
In March 2016, Capza took a 20% minority stake in Talan, drawing equity from Capzanine 3. The €350m fund invests €7-50m per transaction in French companies with enterprise values of €20-300m. At the time of the closing, around 70-75% of the capital was earmarked to be deployed as mezzanine, with the remainder being equity investments.
The fund has realised several assets to date, including software company Finance Active, medical equipment company Groupe Marle and property and casualty insurance company Opteven.
Paris-based Talan supports companies and governments in France and internationally in the implementation of IT projects. Founded in 2005, the company employs 2,500 people and generated a turnover of €258m in 2019.
Towerbrook – Karim Saddi (managing partner, co-president).
Capza – Maxence Radix (associate director).
Talan – Mehdi Houas (chairman).
Equity – AyacheSalama (legal); Rothschild (corporate finance); EY (financial due diligence).
Company – Natixis Partners (corporate finance); Archers (legal); Eight Advisory (financial due diligence); Eight Advisory Tax (tax); Roland Berger (commercial due diligence); KPMG Avocats (legal, commercial due diligence).
First MBO in Italy for the GP, which will now start investing from its recently raised Fund VIII
Add-on comes after Mergermarket reported that the sale of Bergman had been suspended in March 2020
Trade buyer Xact was acquired by JLL Partners from Clearview Capital in 2018 in an MBO
Existing investors Novo Holdings, Morningside Ventures and Brace Pharma Capital also participate