European mid-market private equity fund Oakley Capital Private Equity‘s listed vehicle Oakley Capital Investments Limited is to acquire a 51% stake in intergenia AG, a German-based web hosting company providing managed, dedicated and cloud hosting. As part of the transaction the company will be providing 10 million euros ($13.38 million) of senior financing and the fund will provide an additional 30 million euros ($40.1 million) of equity financing to fund the acquisition.
Oakley Capital Investments Limited (AIM: OCL, the ‘‘Company’’), the AIM-listed company established to provide investors with access to the investment strategy being pursued by Oakley Capital Private Equity L.P . (the “Fund”), today announces that the Fund has agreed to acquire a 51% stake in the business currently conducted by intergenia AG, a leading web hosting company providing managed, dedicated and cloud hosting.
intergenia trades under three different hosting brands (PlusServer, serverloft and SERVER4YOU), and is headquartered in Cologne, (Germany). The group owns data centres in Strasbourg (France) and St Louis (USA), and also owns WorldHostingDays, which operates the largest series of hosting conferences worldwide. intergenia has a geographically diversified customer base composed predominantly of SME customers and is one of the German market leaders in providing dedicated hosting to SMEs.
The managed hosting market in Europe and North America is expected to grow at between 15% and 20% per annum through to 2013 according to published estimates. The Fund believes intergenia is well-positioned to benefit from these market trends and achieve further growth both domestically and internationally.
As part of the transaction the Company will be providing 10 million euros ($13.38 million) of senior financing with the Fund providing an additional 30 million euros ($40.1 million) of equity financing to fund theacquisition(includingtransactioncosts). Foundersincludingseniormanagement will retain an indirect 49% stake in the business post-acquisition and will benefit from a vendor loan. The transaction is conditional upon the reorganisation of the target group structure and is expected to complete on 31 December 2011.
The Fund is providing financial and strategic support in a buyout of intergenia to support management in taking the business to the next stage of its development.
Peter Dubens, Director of Oakley Capital Investments Limited, said,
“We are delighted to be backing such a talented management team in an industry, namely webhosting, which we know well. intergenia is an impressive company which has built one of Europe’s most energy efficient data centres, utilising ground water cooling. The company’s highly efficient operating platform has allowed it to expand internationally with France, USA, Switzerland and Brazil being the largest contributors to revenue after Germany. intergenia is well positioned for growth in cloud hosting services and makes an attractive addition to Oakley Capital Private Equity L.P.’s portfolio “
Arma Partners acted as exclusive financial advisor to intergenia AG