PE-backed Smile to bolt on Open Wide

The acquisition of Open Wide, which is currently at the exclusive negotiations stage, is expected to strengthen Smile's foothold in the European open-source market as it adds two new production sites in Toulouse and Luxembourg.

With an estimated 1,000-strong workforce, the group resulting from the deal will manage 19 offices across nine countries and generate an estimated €70m in sales via six business lines.

The takeover will be supported by EdRip and Keensight. The former backed the company in January 2010, when it injected €3.5m via its small-cap Cabestan fund family in return for a minority stake.

Keensight became a majority shareholder in Smile in January 2014 when it supported an MBO alongside EdRip and CEO Marc Palazon. Keensight's investment was not revealed at the time, but the firm typically deploys €5-30m per deal as standalone and up to €100m when investing alongside others.

Both Keensight and EdRip's Cabestan have been active in recent weeks, according to unquote" data. Keensight backed the MBO of French temporary work management system Pixid, while EdRip invested in the OBO of French professional equipment lessor Realease.

Company
Paris-headquartered Open Wide was founded in 2001 and develops open-source software for Airbus, Safran and Samsung, among other clients. With revenues sitting around the €15m mark, the company employs 150 professionals.

Smile also operates in the open-source software segment and is present in France via its headquarters in Asnières-sur-Seine, near Paris, and offices in seven other European countries. The company posted €52.8m in sales in 2014 and employed 800 professionals prior to the purchase of Open Wide.

People
Keensight's work on the deal was led by partner Philippe Crochet. Marc Palazon is Smile's current CEO.

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• Keensight Capital
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