CVC buys BIP from Apax

The deal values the company at around €700m, equal to approximately 10x EBITDA, according to press reports.

The GP has invested in the company via CVC Capital Partners Fund VIII, which closed on €21.3bn in July 2020, surpassing its €17.5bn target.

Following the deal, BIP president Nino Lo Bianco and co-CEOs Carlo Capè and Fabio Troiani will retain a significant minority stake and continue to lead the company.

In February 2021, Apax hired JP Morgan, Equita and Rothschild to run the sale of the business, which attracted the interest of several private equity firms, including CVC, Bain, Cinven, Charterhouse, BC Partners, Apax Partners and Intermediate Capital Group (ICG), according to press reports.

In May 2021, Unquote sister publication Mergermarket reported that CVC and ICG were the two frontrunners in the auction.

The deal ends a three-year holding period for Apax. Under its ownership, the company increased its revenue from around €160m to €315m and pursued and intensive buy-and-build strategy, completing several add-ons, including the purchase of Mea Consulting in 2019 and the acquisition of Chaucer from Growth Capital Partners (GCP) in 2020.

Previous funding
Argos Soditic acquired BIP in May 2014, deploying capital from its Euroknights VI fund, in an all-equity management buyout. Under Argos, the company expanded and increased its revenues from €80m to €160m.

Apax bought a 60% stake in BIP from Argos Soditic in March 2018, in a deal valuing the company at around €200m, while the management team retained the remaining 40% stake. The GP invested in the company via its €1bn Apax France IX fund.

Company
Founded in 2003 and based in Milan, BIP specialises in management consulting, business integration and digital transformation, and supports international companies in the research and adoption of disruptive technological innovation.

Employing 3,500 staff, the business operates mainly in the telecoms & media, energy & utilities, pharmaceutical, healthcare and financial services sectors, with a presence in 13 countries worldwide.

BIP generated turnover of €315m in 2020, up 31% on 2019.

People
CVC – Giampiero Mazza (managing partner); Andrea Ferrante (senior managing director).
BIP – Nino Lo Bianco (president); Carlo Capè, Fabio Troiani (co-CEOs).

Advisers
Acquirer – BNP Paribas (M&A); Latham & Watkins (legal); Facchini Rossi Michelutti (tax); Bain & Co (commercial due diligence).
Vendor – Equita (corporate finance); Rothschild (corporate finance); Allen & Overy (legal); BonelliErede (legal); PwC (financial due diligence); AON (insurance due diligence).

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