Eurazeo sells Cap Vert Finance to Carlyle in €137m SBO

José Rojo
02 July 2015

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Listed GP Eurazeo has sold its majority stake in French computer maintenance service Cap Vert Finance to Carlyle Group after less than two years of ownership.

Carlyle has yet to disclose the stake it has secured in Cap Vert, but market sources place it around the 60% mark. The company's management invested alongside the firm, securing all remaining shares.

Carlyle drew equity from its Carlyle Europe Technology Partners III fund. The buyout vehicle hit its €656m hard-cap in May this year, one year after launching with a €500m target. It has already invested in the acquisitions of Spanish information technology company Telvent Global Services from Aurelius in May and Dutch managed network operator Expereo, its maiden deal in June 2014.

The tertiary buyout, subject to the approval of the competition authorities, will see Cap Vert Finance continue the international and commercial expansion plans already put in place during Eurazeo's tenure.

A special focus will be placed on clients looking to reduce their carbon dioxide footprint and comply with electronic item life cycle requirements set by the European Union Waste of Electrical and Electronic Equipment (WEEE) directives.

Debt
Information about debt put in place for the SBO remains confidential, but market sources report a senior debt facility was arranged, amounting to a 47% debt-to-equity ratio.

Previous funding
Cap Vert Finance first came under private equity ownership in December 2010, when Atria Capital Partenaires invested via its third fund to acquire a majority stake in the business.

Three years later, Eurazeo acquired a 57% stake in the computer maintenance service. Investing alongside the GP was the company's management, which secured a 35% stake. Cap Vert founder Loïc Villers retained control over 8% of the capital, according to unquote" data.

Cap Vert has since undertaken a buy-and-build strategy, acquiring Aditia Lease, Digital Computer Service and Phoenix Services within a year. Along with the creation of seven subsidiaries abroad, the bolt-ons have driven revenues from the €60m posted in 2013 to €87m by late 2014, according to Eurazeo.

Company
Established in 2007, Cap Vert Finance is an electronic infrastructures maintenance provider. The company offers services such as server operation and repairs, networking equipment and IT storage and electronic equipment recycling, leasing and trading.

Headquartered in Paris, Cap Vert has a presence in 110 countries via 14 subsidiaries. Employing a workforce of 250, the company posted €87m in consolidated sales in 2014, a third of which came from abroad.

People
Carlyle Group was represented by managing director Vladimir Lasocki, while Eurazeo associate director Pierre Meignen, chairperson Olivier Millet, investment director Mathieu Betrancourt and associate Rafaelle Faibis led the deal for the listed GP. Bruno Demolin is CEO and chairperson of Cap Vert Finance.