The inside story of how Naxicap realized the best terms for their investment in Sogelink
After a competitive process, Keensight Capital, one of Europe’s leading growth buy-out firms, stood out from the crowd and became Sogelink’s majority shareholder while Naxicap decided to remain on board
Keensight first invested in Sogelink in 2013, then sold the company to fellow middle-market private equity firm Naxicap Partners in 2016. Oaklins assisted Sogelink and its shareholders throughout this highly competitive sale process. The team approached investment funds and companies around the world and structured the most attractive transaction for its client.
In a highly competitive process at an extremely fast pace, they were able to interest a number of leading global investors. With Keensight Capital, Sogelink has the intelligence and the financial resources to replicate its success in new verticals and to extend its model internationally.ÉRIC FÉLIX-FAURE FOUNDER & MANAGING PARTNER OAKLINS, FRANCE
Last July the shareholders of Sogelink retained Oaklins' team in France, led by managing partner Éric Félix-Faure, to conduct a dual-track process before the end of 2019. Éric says the short time frame worked in favor of private equity firms — while strategic and financial buyers were invited, only private equity firms were familiar enough with Sogelink to complete due diligence and line up financing for a bid in time. Since its founding in 2000, Sogelink’s growth had caught the attention of private equity buyers looking to put their dry powder to work. Sogelink designs, develops and markets software and software as a service (SaaS) solutions intended to simplify and optimize complex business processes in the building site, infrastructure and property management industry.
Market trends and deal drivers
The French building and public works market is large (over US$240 billion) and fragmented (536,000 players). It brings together heterogeneous and interdependent parties in a highly intricate ecosystem. Moreover, there are numerous risks in this area, such as human and safety, environmental, compliance, and asset preservation. The sector is accelerating its digitization but still suffers from low quality and inefficiencies that cost the industry up to US$65 billion per year. Thereupon, the development of software platforms can only be exponential and will support growth in the coming years.
We are pleased to have selected Oaklins to support us in our search for the right partner. The team perfectly understood our solutions and our ecosystem. We worked as a team and Oaklins’ efficiency allowed us to carry out a process that met our expectations while preserving the company’s daily performance.FATIMA BERRAL, CEO, SOGELINK SAS, FRANCE
M&A valuation aspects
The valuation of the transaction remains confidential but exceeded the shareholders’ initial expectations. In addition to the ability to generate growth and profitable margins, the quality of the management team and an innovation-driven DNA had a strong influence on the valuation. Transactions in the sector are currently based on EBITDA multiples of 12–20x.
About Sogelink
Founded in 2000, Sogelink designs, develops and markets software and software as a service (SaaS) solutions designed to simplify and optimize complex business processes in the building site, infrastructure and property management industries. With its unique collaborative platform, Sogelink stands out as a pioneer and the undisputed leader in its market in France. It is also the number one provider of topographic software. Over the past 20 years, Sogelink and its 180 employees have built up a diverse and loyal base of 18,000 clients, representing more than 80,000 users. In 2018, Sogelink generated revenues of US$42 million and has recorded top-line annual growth of 20% over the last 10 years. Its robust business model ensures increasingly recurrent revenues and a high level of profitability.
About Naxicap Partners
As one of the top private equity firms in France, Naxicap Partners – an affiliate of Natixis Investment Managers – has US$3.5 billion in assets under management. As a committed, responsible investor, Naxicap Partners builds solid, constructive partnerships with entrepreneurs so that their projects can succeed. The firm has 39 investment professionals in its offices in Paris, Lyon, Toulouse, Nantes and Frankfurt.
About Keensight Capital
Keensight Capital is committed to supporting entrepreneurs as they implement their growth strategies. Drawing on its expertise in the IT sector, the firm identifies the best investment opportunities in Europe and works closely with management teams to develop and achieve their strategic vision.
Contact for this transaction or local contact
Managing Partner
View profile
Managing Partner
Full profile
Download pdf
All information about the transaction, market trends, deal drivers and M&A valuation aspects is also available as pdf.
