Eurazeo takes majority stake in NeoXam following 'intense process'

The firm is investing over EUR 100m in the Paris-headquartered business, which specialises in accounting, investment management and asset management software for the asset management and wider financial services industry, and generates around EUR 75m revenue, Pierre Meignen, managing director of the GP's Small-Mid Buyout team, told Unquote.

Following what Meignen described as an "intense process" that saw a number of UK, US and French sponsors vying for the business, Eurazeo was able to clinch the deal after touting the GP's international presence and growth track record for its companies.

Macquarie conducted the sale process marketing the business off around EUR 15m EBITDA, as reported by Unquote.

NeoXam is the sixth investment made by Eurazeo PME IV, which closed on EUR 1.07bn last July. The fund, which is double the size of Eurazeo PME III, will largely follow its predecessor in targeting French asset-light SMEs generating between EUR 10m to EUR 20m in EBITDA, as reported.

Around 45% of the fourth SME fund has been invested with two to three more years of deployment ahead, Meignen said.

Plans are now being drawn up by Eurazeo and the management to double NeoXam's size through bolt-on acquisitions and organic growth over the next several years of holding period, he said.

A particular focus will be expanding its data management software capabilities, as well as growing the company internationally, including in Asia, the US and the UK, he added.

Company
NeoXam was created in 2014 following a carve-out from Sungard and a series of acquisitions. It has 550 employees, of which half are in R&D, across 15 offices worldwide, including in Europe, the US, Canada and Asia. The company provides "data-centric" solutions used by more than 120 clients, including asset managers, financial institutions, and global banks, to structure their IT systems. Its solutions cover front office (portfolio management system) to back and middle office, accounting (NAV) and regulatory and client reporting teams.

Advisors
Vendor – Macquarie

People
NeoXam - Serge Delpla (founder), Florent Fabre (managing director).
Eurazeo - Pierre Meignen (managing director of small-mid buyout team).

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