LBO France acquired a majority stake in Prenax, a business process outsourcing company. Prenax management is substantially re-investing in the business with the support of Andrea Partners. The deal, through LBO France’s second small cap opportunities fund, is related to the firm’s acquisition of LM Information and the takeover of one of its US subsidiaries.
LBO France, through its Small Caps Opportunities II fund, has acquired a majority stake in the French company Prenax. This move relates to the acquisition of the subscription management operations of LM Information (“LM”), based in Finland, and the takeover of one of its US subsidiaries (“LM Inc.”). This deal with the management team of Prenax, which is re-investing substantially with the support of Andera Partners, will make it the leading independent European company in the sector.
Prenax, a business process outsourcing company founded in 1993, serves its clients – mainly large companies, but also government and university stakeholders – by taking charge of the information subscription’s entire lifecycle, from order intake and processing all the way to billing, via its proprietary extranet. With operations in France, the United States, the United Kingdom, Australia, and all four Nordic countries, Prenax has finalised 10 acquisitions since 2007 and generates nearly €140 million in business volume.
LBO France’s investment is part of the acquisition of Finland-based LM’s subscription management assets. With €110 million in revenue, LM is the fourth-largest European player in the market, operating in some ten countries for universities and governments, and, to a lesser extent, private companies.
This consolidation operation makes Prenax the European leader in the procurement of information sources for corporate, government, and academic clients. The two companies are very well-matched geographically, especially in Spain, Belgium, and the Netherlands, and will be able to harness many synergies. Further external growth operations with local players are planned, including one in Australia that should close by the end of the year.
With the support of LBO France, Prenax’s management team, led by Jérôme Conquet, is making a significant reinvestment in the new group, with Andera Partners at its side for the past three years.
As Nicolas Manardo, Managing Director at LBO France, comments, “The experience of Jérôme Conquet and the Prenax management team, coupled with the opportunity to establish a European leader in the sector, were decisive factors in LBO France’s choice to carry out this complex but promising cross-border transaction. We will continue to support management in its growth projects and provide them with LBO France’s experience in integrating large-scale targets.”
Jérôme Conquet, President and CEO of Prenax, adds, “We want to be able to rely on a leading partner to continue our development strategy while preserving the group’s culture and independence. With LBO France’s expertise, we can boost our geographical development through external growth while drawing on their operational performance team during this major integration of LM.”
“The merger of Prenax and LM is a unique opportunity to build a leading group in Europe,” notes Jussi Kettunen, Managing Director of LM Information. “This will open up real opportunities for our customers and all of our employees.”
And Laurent Fichter, Partner at Andera Partners, states, “We’re thrilled to be extending the three-year partnership with Prenax’s management team. It will be a real pleasure to accompany Prenax and LBO France through this pivotal acquisition for the group.”
About LBO France
As a key player in private equity with €6.2bn of commitments, LBO France is an independent company that has been supporting French and Italian companies in their growth for more than 30 years. Its investment strategy is built on 4 distinct segments managed by dedicated teams: (i) Mid Cap Buyout through the White Knight funds and Small Cap Buyout through the Hexagone/Small Caps Opportunities funds, (ii) Venture Capital through the SISA/Digital Health funds, (iii) Real Estate through the White Stone and Lapillus funds, (iv) Debt. Historically focused on Institutional and Family Office investors, LBO France has recently launched the FCPR White Caps Selection, a private equity fund accessible to individuals through multi-strategy funds. LBO France is 100% owned by its management and employs nearly 60 professionals.
Find out more: www.lbofrance.com
Prenax Group started life in Sweden in 1993, and has expanded through organic growth, acquisitions, and partnerships, to become the world’s largest corporate subscription management partner to organisations. Operating from the USA, through Europe to Asia-Pacific it serves financial and legal services, advanced engineering, consulting, medical libraries, pharma, and local governments. From its local offices in 8 countries worldwide, Prenax simplifies and centralises the information resources procurement process. It manages and consolidates subscriptions and memberships through a single supplier to ensure customers benefit from lower costs, better visibility, and control.
About Andera Partners
Set up in 2001 within the Edmond de Rothschild Group, Andera Partners is a benchmark in the private equity investment sector, both in France and internationally. It manages more than EUR 2.5 billion based around life sciences (BioDiscovery), expansion and buyout capital (Winch Capital for mid-caps and Cabestan Capital for small caps) and sponsorless mezzanine financing (ActoMezz). Providing services to entrepreneurs and respect for the partners are the foremost concerns of Andera Partners, which is wholly owned by its teams. The investment company is also a signatory to France Invest’s 2020 Carbon Initiative and the United Nations Principles for Responsible Investment (UNPRI) for the adoption of best environmental, social and corporate governance (ESG) practices. Based in Paris, Andera Partners is an AMF-accredited management company with more than 70 employees, including 47 investment professionals. The firm is organised as a partnership and managed by a college of ten partners.
The performance of its funds, the diversity of its offering and its organisational model enable Andera Partners to stand out in the markets where it operates and to be recognised as a key market player.
About LM Information Delivery
LM Information Delivery is a leading international subscription and information management service provider. The company has local offices in 10 countries worldwide and serves customers across the globe. Our customers include academic and research libraries, municipalities, public libraries and corporate businesses across many sectors.