Factum Finance (France) - Oct 2007

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01 October 2007

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Naxicap Partners and Spef LBO have co-led the secondary buyout of IT rental business Factum Finance, alongside its management, which regained control on this occasion. The deal, which values the company at around €40m, generated an IRR in excess of 50% for vendor Perfectis Private Equity. Thanks to their network of contacts, the duo of new investors positioned themselves in a favourable position to win an auction run by Aforge Finance, which drew in offers by six private equity firms. Eurocapital, a structure owned by the Banque Populaire de Lorraine was also invited to take an equity stake. The decision to sell was made in March 2007.

Financing

In a bid to minimise disruption and close the deal before the autumn, which is a crucial time in the company’s business cycle, the vendor proposed a staple financing with the firm’s existing banks SNVB and Banque Palatine. The lead financial sponsors also provided a mezzanine strip. Total debt represented around half of the new deal’s value.

History

Perfectis backed the company’s original buyout in July 2005, acquiring a 55% stake in the business via its fund Perfectis I (October 2005, page 30). Since then, the company has completed an acquisition and has overhauled its reporting and management tools.

Company

Factum Finance is headquartered in Nancy and was founded in 1995 by Philippe Durst and Benoît Zimmermann. The company hires computers and various software packages, with the possibility of modifying or upgrading their orders over time. The company saw its revenues increase from €66m in 2004 to €96m in 2007, with 2007 EBIT standing between €4.5-5m. Revenues of €200m are aimed for within four years, thanks to a dual strategy involving the opening of agencies in new areas and a proactive acquisitions policy. Typical targets will be French competitors in the Paris, Western and South-Western regions, or complementary sector-specific companies with a turnover between €5-30m. Negotiations are underway with three or four potential candidates.

People

Jacques Vachelard of Spef LBO and Laurent Sallé of Naxicap Partners co-operated on this transaction, while Lionel Werner represented Eurocapital. Jean-Marie Lavirotte, Stéphane Bergez and Fabrice Fleury negotiated the exit for Perfectis Private Equity. Philippe Durst and Benoît Zimmermann are Factum Finance’s CEOs.

Advisers

Equity - De Pardieu Brocas Maffei, Arnaud Gomel, Jean-François Pourdieu (Legal)Management - ACD, Armin Cheval, Jean-Jacques François (Legal)Vendor - Advention, Alban Neveux (Other Due Diligence)Vendor - Aforge Finance, Joseph El, Louis Huetz, Valérie Pellereau (Corporate Finance)Vendor - Aon Accuracy, Elyse Salzmann, Frédéric Loeper (Financial Due Diligence)Vendor - Thémis, Charlotte Lagrange, Xavier Roguet (Legal)