Cipio reaps 3x on Ipanema trade sale

José Rojo
09 April 2015

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Secondaries player Cipio Partners has scored a 3x return on its final exit of French software developer Ipanema Technologies to private equity-backed Infovista.

The sale of Cipio's participation comes almost 11 years after its acquisition of a portfolio of 15 direct investments from German venture capital firm T-Venture Holding. Market sources place the value of the 2004 direct secondaries deal at between €10-100m.

The portfolio consisted of companies in the international technology, media and telecommunication sectors including US-based VPIsystems and Germany's Nexnet, according to unquote" data.

Ipanema was the last of the portfolio's assets still in the hands of Cipio. Previous exits include: California-based software developer Danger, exited to Microsoft; and German firms eCircle and NaWoTec, sold to TA Associates and Zeiss, respectively.

According to Cipio, the software developer's turnover has seen a nine-fold increase from the €3.5m generated in 2004 to more than €30m reported for the last fiscal year.

As for the current fiscal year, the firm expects revenues to jump by 40%, surpassing the €40m mark. Ipanema reached profitability in 2014.

Previous funding
Cipio Partners sourced Ipanema's acquisition via its Fund I and secured an initial stake of around 10% in 2004.

Three subsequent secondary transactions, valued at between €1-2m, took place and the firm gradually increased its stake to ultimately reach 40%.

In 2007 Cipio undertook its first primary investment in Ipanema, valued at around €1m. It is understood the deal was followed by a €4.5m debt package supplied by Amati Global Investors (formerly Noble Fund Managers) in 2008, which was fully repaid.

In 2009, London-based venture capital firm DFJ Esprit became involved in Ipanema via a secondary transaction from 3i Group.

Company
Founded in 1999, Ipanema Technologies is a provider of application traffic management systems for wide area networks (WAN). Headquartered in Fontenay-aux-Roses, France, the company manages 150,000 websites that use its integrated autonomic networking system (ANS).

People
Cipio Partners was represented by managing partner Roland Dennert. Ipanema CEO Jim Darragh will be replaced following the closing of the transaction.

Advisers
Vendor – Gide Loyrette Nouel (Legal); Magister Advisors (Corporate finance).
Acquirer – Franklin (Legal).