IK invests in Prophecy Group

CEO Arthur Bataille will retain control of the group and will remain in his management position.

Capital Finance reported that IK has invested EUR 15m in the business.

IK Partners said in a statement that the company's growth plans will include consolidating the French cybersecurity market, as well as recruiting more than 100 additional staff in France in 2022.

The deal was led by IK's Development Capital team, the GP said in a statement, and is the first investment from the dedicated pool of Development Capital in its IK Small Cap III vehicle. The fund held a final close in April 2021 on EUR 1.2bn and focuses on small-cap businesses with enterprise values in the EUR 50m-150m range.

IK's Development Capital team focuses on businesses with enterprise values of less than EUR 50m, continuing the strategy initially pursued by IK Partners' debut Small Cap fund.

The investment in Prophecy is the sixth deal announced by the GP in H2 2021 and the third to be announced in October. Its recent investments include the acquisition of Germany-based IT service Conet from HIG Capital, which the GP acquired via its EUR 2.85bn IK IX fund. IK IX targets companies with enterprise values of EUR 100m-500m.

Company
Headquartered in Guyancourt in the suburbs of Paris, Prophecy was formed in 2021 via the merger of cybersecurity and IT infrastructure consultancy Silicom with cybersecurity e-learning platform Seela. Silicom was founded in 1983, while Seela was founded in 2019. Prophecy aims to provide cybersecurity services for private companies and government organisations, as well as an e-learning platform for IT professionals.

The company has 280 employees. It posts revenues of EUR 20m, according to Capital Finance.

People
IK Partners – Pierre Gallix (partner).
Prophecy Group – Arthur Bataille (founder, CEO).

Advisers
Equity – Oderis Consulting (financial due diligence); Magellan Consulting (IT due diligence); Delsol Avocats (legal); Hoche Avocats (legal).
Company – Argos Avocats (legal); Cambon Partners (corporate finance); NG Finance (financial due diligence).

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