Eurazeo PME in €100m Orolia take-private

José Rojo
16 February 2016

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Eurazeo PME has acquired a majority stake in French GPS technology developer Orolia as part of a €100m take-private for the business, marking exits for Isatis Capital and Euromezzanine.

Pending regulatory approval in both France and the US, the take-private is expected to go through in April 2016. The deal will see Eurazeo PME take a 50.1% stake in the newco, while CEO Jean-Yves Courtois and the management team respectively secured a 40% and 9.9% holding.

At €20 per share, the transaction values Orolia at a global €100m; the price represents a 22% premium on the €16.2 share price the Alternext-listed business was last trading at on 11 February 2016.

With Eurazeo as a shareholder, Orolia will look to grow within the GPS signal reliability segment in France and abroad, where the potential for consolidation is significant. According to the GP, there are plans to overhaul the company's structure with a focus on the corporate and social responsibility dimension.

Previous funding
Prior to Eurazeo's takeover, Orolia was controlled by the Asscher family, who owned a 52% stake. In addition, French investors Isatis and Euromezzanine held a 17.6% and 6.6% holding respectively. The take-private will result in a full exit for both GPs, according to an unquote" source.

Isatis and Euromezzanine became shareholders in Orolia in 2007, when they invested a joint €12m alongside A Plus Finance, CM-CIC Capital Privé and XAnge Private Equity. Having backed a series of bolt-ons in the following years, Isatis has injected €6m into the business since 2007 and will reap a 2-3x return in the current exit, the unquote" source added.

Company
Founded as a GPS technologies specialist in 2005, Orolia listed on Alternext Paris in 2006. During the years since, the business has grown via nine bolt-ons and currently targets aerospace and security clients via the Spectracom and McMurdo subsidiaries, respectively.

Headquartered in the Sophia-Antipolis business centre, near Cannes, the company is also active in the UK, Switzerland, the US, Russia and China. According to its figures, 80% of its current €100m turnover figure was generated abroad.

People
Eurazeo PME – Erwann Le Ligné (associate director).
Orolia – Jean-Yves Courtois (CEO).