
LBO France buys majority stake in Prenax
LBO France has acquired a majority stake in subscription management business Prenax, with the management team and sponsor Andera Partners reinvesting alongside LBO France in the new structure.
LBO France also announced that Prenax has acquired Finland-headquartered LM Information Delivery's subscription management business. The two companies will be combined as part of a plan to consolidate the sector. The companies will operate as Prenax or LM-Prenax, depending on the geography in which they are active. The combined entity will be based in France.
Prenax has expanded via 10 acquisitions since 2010 and plans to close a further add-on in Australia before the end of 2020, according to a statement.
The GP is investing via its Small Caps Opportunities Fund, which held a final close in December 2018 on €104m. The deal will be the sixth platform investment from the fund, according to Unquote Data.
The deal is backed by senior debt from a consortium of Banque Populaire and Societe Generale. The debt has refinanced Prenax's previous facility and also includes a revolving credit facility. Mezzanine debt was provided by Andera, which refinanced its previous mezzanine package and rolled over its equity interest into the new group. Andera invested via ActoMezz III.
A newco was created to acquire Prenax, while Prenax itself has created a further newco to acquire LM Information Delivery's subscription management busines. Equity from LBO France and mezzanine debt from Andera have been used to finance the LM acquisition.
Previous funding
Andera, then known as Edmond de Rothschild Investment Partners, backed Prenax's MBO in January 2018, in which the company's management became majority owners and Andera took a minority equity stake. The GP invested via ActoMezz III, which held a final close in may 2017 on €315m and made investments of €5-45m in companies with EVs of €20-150m.
Company
Founded in 1993 and based in Courbevoie, Prenax is a software platform that manages subscription services, including multi-user licences, print and online subscriptions, as well as professional memberships and outsourced library services. Prenax serves companies in the legal, financial, technology, media and telecommunications sectors, as well as educational and public sector organisations.
Prenax generated revenues of €130m and EBITDA of €3.8m in 2017; it now reports revenues of €140m.
The subscription management operations of Finland-based LM Information generally serve clients in the public sector, including universities and governments, across 10 countries. LM Information generates revenues of €110m.
People
Prenax – Jérôme Conquet (president, CEO).
LM Information Delivery – Jussi Kettunen (managing director).
LBO France – Nicolas Manardo (managing director).
Andera Partners – Laurent Fichter (partner).
Advisers
Equity (LBO France) – PwC, Arnaud Thibesart, Charles Guenel, Benjamin Chabod, Eric Zhu, Maunu Riipinen, Arnaud Thibesart (financial due diligence); Jérôme Gertler, Claire Pascal Oury (legal); Xavier Etienne, Arielle Ohayon, Julie Givernaud (tax); Bernard Borrely, Aurélie Cluzel-d'Andlau, Corinne Bourdelot (ESG due diligence); Castren & Snellman, Benjamin Bade, Annamari Friskopf (legal, ESG due diligence, tax); Netsystems, Olivier Cazzulo (IT due diligence); LEK, Serge Hovsepian, David Bishop, Léonore Bosch (commercial due diligence); Jeantet, Philippe Matignon, Pascal Georges (legal).
Andera Partners – McDermott Will & Emery, Pierre-Arnoux Mayoly, Shirin Deyhim (legal).
Company (Prenax) – Goodwin, Jérôme Jouhanneaud, Hind Badreddine (legal).
Company (LM Information Delivery) – Hedman Partners, Esa Halmari, Mikko Junno (legal).
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