Auriga reaps 33x multiple on Neolane exit

Ellie Pullen
28 June 2013

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Auriga Partners has realised a substantial 33x money multiple on its exit from Paris-based Neolane to Adobe for $600m.

The transaction is expected to be finalised in July, subject to customary closing conditions.

The firm, which originally invested in the company via its Auriga Ventures II fund, can also boast a 65x multiple return on its initial investment in Neolane of €1.4m in 2002. Auriga holds a 20% stake in the company.

Auriga was originally planning to float the company in the US sometime next year. Despite the firm not initially planning on staying invested in the company for such a substantial length of time - slightly more than 10 years - Auriga decided to pursue its shareholding in the company due to Neolane's successful growth.

The company has grown substantially under Auriga's backing, having increased its workforce from 15 in 2002 to its current staff count of 300. Turnover has also increased from a forecast €1m for 2002 to €44m recorded in 2012.

Auriga followed its initial investment of €1.4m in Neolane with a €5m capital increase in 2006 alongside XAnge Private Equity. Last January saw a third funding round for the company with €25m in capital contributed by Auriga, Battery Ventures, XAnge and angel investor Gilles Quéru.

The company's growth is down to international expansion. Under Auriga's guidance, Neolane entered the UK and Nordic markets, followed by the US. The company then ventured into Germany and Asia Pacific. Neolane has not made any acquisitions in the ten years Auriga has backed it.

According to Adobe, Neolane's founders and its chief product officer Suresh Vittal will join Adobe in management roles and will report to the company's digital marketing head.

Neolane will be integrated into Adobe's digital marketing arm.

Company
Founded in 2001, Neolane is based in Paris and employs 300 staff. The company provides cross-channel campaign management technology, which allows online and offline marketing data to be delivered across channels. The technology offers campaign execution over email, social media, mobile, internet, call centre, direct mail and point of sale platforms.

Neolane's customer base numbers 400 and includes Sony, Barnes & Noble's website, Sears Canada and Sephora Europe. The company recorded turnover of €44m in 2012.

People
Stéphane Dehoche is the CEO of Neolane and cofounded the business alongside Stéphane Dietrich, Thomas Boudalier and Benoît Gourdon. Philippe Granger, a partner at Auriga, sits on the company's supervisory board as vice president. Brad Rencher is the senior vice president and general manager of Adobe's Digital Marketing subsidiary.