BIP management presentations ongoing, with strong PE interest

Management presentations with interested private equity houses are taking place, the sources said.

BIP has seen interest from many international funds such as CVC, Bain, Cinven, Charterhouse Capital Partners, BC Partners, Apax Partners and Intermediate Capital Group (ICG), they said, adding that after Easter, management will decide which suitors will be invited to participate to its auction.

The auction has not been launched yet, the sources said, disclosing that the exit of Apax France won’t translate into strict timelines.

In February, Mergermarket reported that Apax had engaged JP Morgan and Equita for the sale of the Italian management consulting, business integration and digital transformation business. A week later, Italian press reports noted that Rothschild had also joined the auction team.

The transaction will entail the majority stake of 61.5% owned by Apax France, while an additional 38.5% shareholding held by small shareholders will be not part of the deal, the third source said, as they will intend to reinvest in the business. BIP CEOs Carlo Capè and Fabio Troiani, and chair Nino Lo Bianco, own most of the minority stake. The remainder is held by 15 other managers.

There is robust M&A activity in the space, which is expected to increase further amid fallout from the Covid-19 pandemic. Italian banking software services firm Cedacri was recently acquired by fintech holding Ion Group; and a majority stake in Lutech, an Italian ICT engineering and services company, was recently acquired by Apax Partners from One Equity Partners.

Considering the strong private equity appetite for the sector, BIP is looking to being valued at a double-digit EBITDA multiple. BIP generated €50m of EBITDA on €290m in revenue last year and is set to reach a €350m turnover this year thanks to overseas acquisitions, as reported by Mergermarket.

Apax acquired a 60% stake in the business from private equity firm Argos Wityu in early 2018. A small unitranche debt package was provided to support the deal, which valued the company at €200m, Unquote reported at the time. Apax was deploying capital from its Apax France IX fund, which held a final close in 2016 on its €1bn hard-cap.

Apax was set to invest an additional €100m in the four years post-deal, which would be used to support the company's growth organically and through new acquisitions both in Italy and abroad, according to the Unquote report.

The 2018 deals ended a four-year holding period for Argos Soditic, which acquired the company in May 2014.

 

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• Topics
• Exits
• Buyouts
• Southern Europe
• Apax France SA