Eurazeo to reap 3.2x money multiple in Vitaprotech SBO to Apax

Wahida Ahmed
13 July 2022

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Eurazeo has entered into exclusive negotiations with Apax Partners for the sale of its majority stake in Vitaprotech after four years of holding of the French security specialist.

The transaction, which is subject to regulatory approvals, is expected to generate a cash-on-cash multiple of 3.2x and an IRR of 30%, according to a press release.

Paris-based Apax is investing through Apax Midmarket X fund, which held a final close on EUR 1.6bn in July 2021. The fund invests in European mid-cap companies, according to Unquote Data.

The new owner will aim to accelerate Vitaprotech's international growth and continue pursuing a bolt-ons strategy, with a particular focus on strengthening its software expertise and its global electronic security offering, according to the press release.

Eurazeo invested in Vitaprotech in 2018 investing around EUR 40m to acquire a stake of approximately 60% in the business from UI Gestion, according to Unquote Data. The GP supported the company's organic growth strategy as well as its buy and build plan with nine acquisitions completed. In January 2022, Vitaprotech acquired France-based PRYSM Software, a publisher of integrated solutions for global supervision and security systems, which posted EUR 2.8m revenues in 2020, according to reports.

Vitaprotech targets EUR 80m turnover for 2022, triple the size it had in 2018, according to the press release.

Previous funding
In 2012, French sponsor UI Gestion bought a stake in Sorhea, bolting on peer Til Technologies in 2014 to create ST Group, which was later backed by BPI France and Crédit Agricole Régions Investissement (Carvest).

In December 2017, a group of lenders led by Crédit Agricole Centre Est and including BPI France provided EUR 22m senior debt facility to ST Group, which would later be called Vitaprotech, according to Unquote Data.

Company
Founded in 2012, Vitaprotech is based in Vaulx-en-Velin and has around 400 employees across France, Germany, the UK, and the US. The company provides security services which include securing sensitive sites. It offers intelligent monitoring and video, access control and perimeter intrusion detection systems.

People
Eurazeo - Benjamin Hara (managing director, small-mid buyout team).
Apax Partners - Henry Capelle (partner).
Vitaprotech - Eric Thord (CEO).