Investcorp-backed Impero acquires Netop

Katharine Hidalgo
07 January 2021

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Investcorp Technology Partners portfolio company Impero has wholly acquired software developer Netop.

Netop's existing management team will remain with the business. Investcorp managing director Gilbert Kamieniecky told Unquote that Impero had been in discussions with Netop's management team for around two years. The buy-side did not use a corporate finance adviser.

The acquisition was made both to internationalise Impero's business further, particularly in the US, and to broaden its product offering. The deal was financed as an all-equity transaction.

Investcorp, via Investcorp Technology Fund IV, invested in Impero in 2017. Since then, the business has made one other acquisition in the UK. Kamieniecky said: "Our portfolio companies on average do three add-ons and this type of add-on, where it helps the company to internationalise and complement its offering, is typical. I expect Impero to make more acquisitions in the future."

Kamieniecky told Unquote the firm would not consider exit options for Impero in the short-term: "Netop has roughly doubled the revenue of the business and it needs to be integrated, and there may need to be further acquisitions."

A majority of Technology Fund IV has now been deployed across seven deals. The fund closed on $400m in December 2018.

The vendor of Netop is Consolidated Holdings, the investment company owned by Danish investor Ib Kunøe.

Company
Founded in 1981, Netop is a software provider offering classroom management, safeguarding and remote-control systems to teachers and school administrators. It is headquartered in Birkerød, Denmark, and employs fewer than 100 people.

People
Investcorp Technology Partners – Gilbert Kamieniecky (managing director, head of Investcorp private equity technology business).
Impero – Justin Reilly (CEO).

Advisers
Equity – Proskauer, Steven Davis (legal).
Vendor – Atrium Partners (corporate finance); Nielsen Nørager (legal); Deloitte (financial due diligence).