Providence to close A2MAC1 deal in 1Q23; Five Arrows reinvests

Min Ho
08 November 2022

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US-based Providence Equity Partners has entered exclusive negotiations to acquire French automotive benchmarking company A2MAC1 from Five Arrows Principal Investments.

Five Arrows, a subsidiary of Rothschild's merchant bank arm, and the company's management team will reinvest in the transaction, which is expected to close in 1Q23, according to a statement.

A2MAC1 was marketed off EBITDA of EUR 50m and was expected to fetch a valuation of more than EUR 1bn in a sale process launched in September and run by Harris Williams and Jefferies, as reported by Mergermarket.

The auction drew in a wide cast of sponsor interest, including Eurazeo, Hg, TA Associates, Astorg, Bridgepoint, EQT, Permira and TA Associates, as reported.

A2MAC1 has grown through M&A and partnerships, extending its capabilities and expertise across international and industrial sectors. Acquired by Five Arrows in 2017, the company has tripled in size and expanding its portfolio from static technology benchmarking into other mission-critical and actionable insights, such as cost and performance insights, according to the statement.

Providence registered Equity Partners IX last November, according to Unquote Data. Providence Equity Partners VIII gathered USD 6bn in 2019 against a target of USD 5bn.

Five Arrows registered its Principal Investments IV last July. Its predecessor strategy Principal Investments III raised EUR 1.25bn against a target of EUR 1bn.

Company
A2MAC1 provides benchmarking insights and solutions across the automotive and mobility industry, with over 1,550 car and more than 60 van teardowns to date via its SaaS platform and database. It database has more than 650,000 users from over 500 customers globally.

People
Five Arrows – Emmanuel Roth (co-managing partner), Nicolas Robin (managing director).
Providence – Karim Tabet (senior managing director and co-head of Europe), Davis Noell (senior managing director co-head of North America).
A2MAC1 – Frank Bunte (CEO).

Advisors
A2MAC1 and Five Arrows – Harris Williams and Jefferies (M&A), Paul Hastings (legal), BCG (commercial), Alvarez & Marsal (financial) and PwC (technology and ESG).
Five Arrows– advised on the buy-side by Alantra (M&A) and Bredin Prat (legal).
Providence – Raphael Financial Advisory and Arma Partners (M&A), Kirkland & Ellis, Allen & Overy and Gide Loyrette Nouel (legal), FTI Consulting (financial), Roland Berger (commercial), West Monroe (technology), PwC (tax).