Relevant Documents:
Press Release
Financial Report 2018
Private equity firm Bregal Unternehmerkapital’s acquisition of German legal tech solutions provider STP Informationstechnologie AG is backed by a unitranche provided by a debt fund, according to sources familiar with the matter.
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The leverage level is 6.5x to 7x based on €10 million to €15 million EBITDA, sources said. The transaction is set to close in the next few weeks.
Competition for the debt financing was high, with banks also bidding to provide the funding for the acquisition. STP managed to attract the high leverage level due to its attractive business model as a provider of technical and software solutions to insolvency and legal practitioners, according to sources. Market participants expect an increase in insolvency cases due to the Covid-19 pandemic related lockdown affecting nearly all sectors in Germany.
STP legal tech platform comprises workflow automation, ERP software, specialist technical outsourcing and data businesses. The company employs 200 people serving more than 1,800 customers across Germany, Austria and Switzerland (DACH region).
Munich-based Bregal bought STP from sponsor Hg on Nov. 2, for an undisclosed amount, according to a press release by Hg.
In 2018, STP generated revenue of €19.4 million and had an overall debt of €21.7 million, with €8.7 million bank debt, the financial report for that period said.