IK Partners buys Plus que Pro

Pierre Gallix, managing partner and advisor to the IK Small Cap III Fund, told Unquote that IK and the founders will co-control the business. The transaction was a “cash in, cash out situation” with IK raising some debt, according to Gallix.

According to a press release, senior debt was provided by the Banque Populaire Val de France.

Under IK’s ownership, the business will grow its market share in digital services for SMEs, focusing mainly on organic growth, said Gallix. The business will grow nationally across France, leveraging its experience in the Eastern regions, and it could expand into neighbouring countries in the future.

IK will support the rollout of new and complementary services while marketing Plus que Pro’s consumer feedback solution to a wider range of organisations. IK will also invest in R&D to enhance Plus que Pro’s product offering, according to the press release.

Gallix told Unquote that Plus que Pro is setting up a network of franchisees. Each franchisee will oversee their regions and will be responsible for marketing and finding new customers. Over the last 24 months, the franchise network has expanded. “Whenever a customer goes for a four-year subscription, the franchisee gets paid, so there is some recurrence in the revenue of the franchisee,” Gallix said. Plus que Pro train the franchisee and ensure that they have the right skills, he added.

Prior to the transaction, the GP appointed a CFO, said Gallix, adding that the team is well-managed.

The sponsor will harness its prior experience in the French market and with similar tech-enabled business services companies. Similar businesses the GP has invested in include Sweden-based FCG, a governance, risk management and compliance consultancy, in January 2022; and Netherlands-based IG&H, a consultancy and technology firm, in July 2022.

IK invested from the dedicated pool of Development Capital within the IK Small Cap III Fund, which held a final close at its hard cap of EUR 1.2bn in April 2021. According to Unquote Data, the vehicle aims to target a money multiple gross return north of 2.5x. It will invest in 15-20 companies with enterprise values of EUR 50m-150m.

This transaction marks the fifth investment from the Development Capital pool, which deploys equity cheques of EUR 10m-EUR 25m. Small Cap III deploys cheques of up to EUR 80m and has made six investments, according to Gallix.

Two more deals may be concluded by year-end or in Q1 2023 from the Development Capital pool, said Gallix. This pool focuses on France, the Nordics, the DACH region and Benelux. The vehicle will commence its UK activity in Q1 2023, Gallix said. The sector focus of the Development Capital is mainly on business services, he added.

Company
Plus que Pro was founded in 2014 in Alsace, France and employs 190 staff. The platform enables the end user to find SMEs and craftsmen based on their area and needs, while the businesses and individuals advertising their services are able to grow their online presence. Users are able to review the services based on blockchain technology. The platform focuses on the construction and business services sectors, providing B2C and B2B services. The platform operates on a subscription model.

People
IK Partners – Pierre Gallix (managing partner).
Plus que PRO – Gregory Regouby (CEO, co-founder), Sacha Goepp (co-founder).

Advisers
Equity – Hoche Avocats (legal); Exelmans (financial due diligence); CMI (strategic, technological due diligence); Lamartine (legal).
Vendor – Oddo BHF (financial due diligence); Simon Associés (legal); EY & Associés (financial due diligence); Kerney Partners (technological due diligence).

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