Phoenix sells 1000Heads to PE-backed Labelium

The GP made returns of 3x on the exit, according to a source familiar with the situation.

1000Heads generates EBITDA of between GBP 7m and GBP 10m, the same source said, while a second source familiar told Unquote that the company generates EBITDA of GBP 7m-GBP 8m.

Phoenix and Charterhouse declined to comment.

Phoenix acquired a majority stake in 1000Heads in June 2019, deploying equity via Phoenix Equity Partners 2016, which held a GBP 415m final close in July 2017 and generally invests in businesses with enterprise values of GBP 30m- GBP 150m.

The GP said in a statement that the company's EBITDA doubled during the investment period. The firm also supported 1000Heads with two new office openings, as well as investing in the development of proprietary tools and technology.

Phoenix sold its stake in holiday cabin operator and fellow Phoenix 2016 fund portfolio company Forest Holidays in April 2022, scoring returns of 3x money, as reported.

Charterhouse acquired digital performance business Labelium in July 2021 via a EUR 300m SBO from Qualium Investissement, investing via Charterhouse Capital Partners X, which held a final close in November 2016 on EUR 2.3bn.

The acquisition of 1000Heads follows Labelium's acquisition of France-based search engine optimisation firm SmartKeyword in March 2022. Labelium currently employs 700 staff in its 20 offices operating in 14 countries. It generated EBITDA of EUR 20m and revenues of EUR 55m at the time of its acquisition by Charterhouse, according to Unquote Data.

Company
London-headquartered 1000Heads provides social media-based data, consultancy and creative services with the aim of allowing businesses to build "social age brands". Its clients include Google, Amazon, Meta and Snap Inc.

In 2018, the company posted revenues of almost GBP 21.2m and estimated EBITDA of GBP 3.98m, employing 150 staff. It now employs 170 staff in its offices in London, New York, Los Angeles, Miami, Sydney, Melbourne and Berlin.

People
Phoenix Equity Partners – Mark Sargeant (partner).
1000Heads – Mike Davison (CEO).
Labelium – Stéphane Lévy (president); Sylvain Bonnevide (CEO).
Charterhouse Capital Partners – Cédric Barthélemy (partner).

Advisers
Vendor – Raymond James (corporate finance); Travers Smith (legal); EY (financial due diligence); Plural (commercial due diligence).
Acquirer – BCG (commercial due diligence); Eight Advisory (financial due diligence); Freshfields (legal); Mayer Brown (tax); McFarlanes (tax)

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