The Riverside Company has agreed to sell Bohemia to BAE Systems. No financial terms were disclosed. Bohemia is a global software company.
11 November 2021 – The Riverside Company, a global private investor focused on the smaller end of the middle market, has signed a definitive agreement to sell its investment in Bohemia Interactive Simulations (Bohemia) to BAE Systems, one of the world’s largest defense contractors. Closing of the transaction will occur once regulatory approvals are secured.
Bohemia is a global software company at the forefront of simulation and training solutions. Riverside invested in the business in 2013, with a plan to establish a leader in the space. During Riverside’s investment, the company has grown from a small Czech gaming studio spinout into the global leader in military simulation and training software to NATO-friendly nations, with employee numbers increasing from 80 across four offices in 2013, to more than 325 in 10 offices today.
Globally, hundreds of thousands of military personnel are trained each year using Bohemia’s Virtual Battlespace (VBS) software products, and over 60 NATO and NATO-friendly countries and more than 300 integrators/prime contractors use VBS technology.
“During our partnership with Bohemia, we have developed an enormously strong working relationship,” commented Riverside Partner Martin Scott. “We have helped them expand from a single-product company to a three-, soon to be four-product company, internationalized sales into an unrivalled ecosystem of 360+ customers across 63 countries and built a scalable operations infrastructure and professional management team, as well as supported two generations of development of the company’s flagship product.”
“This proposed sale of Bohemia represents the 14th exit from Riverside Europe Fund IV, delivering another strong result for our LPs. I am proud of our long and successful partnership with the team at Bohemia and look forward to following the next stage in their story with BAE Systems,” added Managing Partner of Riverside Europe Karsten Langer.
“I am grateful to the team at Riverside for their support and stewardship over the course of this investment,” said Bohemia CEO Arthur Alexion. “With Riverside’s strategic advice and financial backing, we have transformed Bohemia into a true world leader and set the foundation for an exciting, continued growth story with our new owner, BAE Systems.”
Working with Langer and Scott on this exit for Riverside were Vice President Marc Baudry, Senior Associate Nándor Hajdu, Associate Rachel Fenlon and Operating Partner Philip Rowland.
Raymond James acted as exclusive financial advisor and Jones Day was legal advisor for Riverside. DLA Piper is serving as legal counsel to BAE Systems.
This transaction is subject to customary closing conditions, including international regulatory approvals.
About The Riverside Company
The Riverside Company is a global private equity firm focused on investing in growing businesses valued at up to $400 million. Since its founding in 1988, Riverside has made more than 800 investments. The firm’s international private equity and structured capital portfolios include more than 140 companies.