Eurazeo, IK invest €400m in Questel

Eurazeo and IK – via its €2.85bn IK IX Fund – will each invest an initial amount of nearly €200m and together hold a majority stake.

A debt package will be provided by Capzanine and Barings, Unquote understands.

In addition to Eurazeo Capital IV, the Eurazeo China Acceleration Fund, which was launched to finance investments in European companies with high growth potential in the Chinese market, will also invest in Questel and support its expansion in China.

The deal follows the announcement made by Eurazeo at the beginning of October that it had entered into exclusive discussions with IK, Raise and the company's management team for the acquisition of a stake in Questel.

Following the deal, Eurazeo, IK and Raise intend to further boost Questel's organic growth, bolster its penetration into new markets and geographies, including the US, and maintain its technological focus.

The GPs also plan to support the company's buy-and-build strategy with additional acquisitions, while strengthening its range of software-as-a-service products provided internationally.

Under IK and Raise's ownership, the group has tripled its size and enriched its offering. The company also pursued a dynamic acquisition strategy, which has helped Questel diversify its range of products and extend its geographical footprint.

Since IK's initial investment, Questel has made four add-ons: French scientific big data specialist Expernova in June 2018; US-headquartered intellectual property translator Multiling in October 2018; India and US-based IP services company Concur IP in February 2019; and German intellectual property service Brandstock in May 2019.

Previous funding
Syntegra bought a 52% stake in Questel in 2008 for €80m, while management and employees acquired a 30% stake and the founding family retained a 10% shareholding.

Raise and mezzanine provider Capzanine backed the secondary buyout of Questel from Syntegra in June 2015 in a deal that valued the company at €55m .

Subsequently, IK acquired a controlling stake in Questel in April 2018, via its €1.85bn IK Fund VIII. Raise also reinvested in the business to extend its holding, while Capzanine provided a unitranche facility to support the transaction. Questel CEO Charles Besson stayed on with the company and reinvested in the deal alongside the GPs.

Company
Established in 1978, Questel is an intellectual property specialist that provides IP advisory services, as well as intellectual asset management software, international filing, document delivery, patent drafting and defensive publication. It also offers a collection of intellectual property databases, as well as online and on-site training.

The business employs 900 staff and works with 6,000 companies in 30 countries, serving around 100,000 users worldwide.

Questel is headquartered in Paris with additional offices in London, Washington, Tokyo and Beijing. It generates EBITDA of around €45m from revenues of €130m, Unquote understands.

People
Eurazeo – Marc Frappier (managing partner).
IK Investment Partners – Dan Soudry (managing partner).
Raise Investissement – Mathieu Blanc (managing partner).
Questel – Charles Besson (CEO).

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