Relevant Documents:Financial Statement for FY ‘20 (in German)
Partners Group and HIG Capital have submitted final bids for German IT software services provider Intive Group GmbH, with debt funds competing to provide financing for the acquisition, sources told Reorg.
Seller MidEuropa Partners is projecting that Intive will generate an EBITDA of about €40 million in 2023, up from the marketed EBITDA of about €30 million, sources said. However, some private equity investors which showed initial interest in Intive decided not to progress in the sale owing to the sellers’ valuation of 14x to 15x and concerns over employee churn, as reported
Goldman Sachs is advising MidEuropa on the sale with a preferred bidder scheduled to be chosen by the end of the year, sources said. The group had bank debt of €61.1 million as of the end of 2020, according to its 2020 accounts.
Partners Group has already invested in a German IT software provider this year, acquiring Cloudflight GmbH from Deutsche Beteiligungs AG for an enterprise value of just under €400 million last month, according to a statement
from the buyer. The U.K.-based private equity investor is considering merging Cloudflight and Intive, if it can acquire the latter, sources said.
MidEuropa acquired Intive for about €100 million in February 2019. The group underwent a refinancing that year.
Intive creates software and provides consultancy services for the digital transformation of clients, which include Audi, BMW, Blackberry, Facebook, Google, Credit Suisse, ING and BASF.
Munich-headquartered Intive operates in Germany, Poland, Ukraine, Argentina, the U.S. and the U.K. with a team of about 3,000 employees.
Partners Group declined to comment. HIG Capital and MidEuropa Partners did not respond to requests for comment by time of publication.
– Nick Krause, Lucía Camblor