30 December 2014

Disposal of intergenia holding GMBH generates 2.5x money multiple and 36% IRR for Oakley Funds

Sector
Web Hosting
Location
Cologne Germany
Fund
Fund 1

Oakley Capital Private Equity is pleased to announce that Oakley Capital Private Equity II (“Fund II”) has, together with its co-owner Bellaxa AG, agreed to dispose of intergenia Holding GmbH and its subsidiaries (“intergenia”) to HEG Co. GmbH (“Host Europe”), for an enterprise value of €210 million. The consideration will be satisfied in cash.

Following the acquisition of intergenia by Oakley Capital Private Equity LP (“Fund I”) in 2012, the disposal is expected to generate a 2.5x gross money multiple across both Funds, with an IRR of 36%.

intergenia is headquartered in Cologne and is a leading supplier of Internet hosting solutions (in particular of managed and dedicated server hosting). intergenia provides a wide range of shared, dedicated and fully-managed solutions (also in the form of cloud hosting) through its brands PlusServer, serverloft, Server4You and Unmetered.com. In addition, intergenia operates Datadock, “Europe’s greenest data centre”. The company also runs WorldHostingDays, the largest series of hosting trade shows worldwide. intergenia generated earnings before interest, tax depreciation and amortisation (“EBITDA”) of €13.8 million in the financial year ending 31 December 2013. intergenia’s current run-rate EBITDA is above €20 million, following recent acquisitions.

Alex Collins, Partner, commented: “intergenia has grown strongly throughout Oakley’s investment period under the excellent management of intergenia’s founders and wider management team. Organic growth was enhanced during 2014 through the successful acquisition and integration of a number of synergistic acquisitions in the ‘managed hosting’ sector in Germany.

The complementary combination of intergenia and Host Europe Group will create one of the most successful and comprehensive hosting businesses in Europe and will create a strong platform for continued organic growth. This transaction is a great example of Oakley’s expertise in the TMT sector and its ability to identify and back top performing entrepreneurs to rapidly grow their companies.”

Thomas Strohe, CEO of intergenia, commented: “We are really excited about the transaction and the development of intergenia. All of this would not have been possible without the great support we experienced from Oakley. At all times, Oakley backed us as entrepreneurs and gave us full flexibility plus all the help we needed. Oakley impressed us with their level of sector knowledge and experience. We would not have generated the same value without Oakley’s help.”

About Oakley Capital Private Equity L.P. (“Fund I”) and Oakley Capital Private Equity II (“Fund II”, together the “Funds”)
Oakley Capital Private Equity L.P. and its successor fund, Oakley Capital Private Equity II, are both unlisted mid-market private equity funds with the aim of providing investors with significant long term capital appreciation. The investment strategy of both funds is to focus on buy-out opportunities in industries with the potential for growth, consolidation and performance improvement. Both funds seek to invest in companies with scale in their industry subsectors, thereby creating a sustainable earnings stream which should command a premium on exit.