Advised intergenia AG, a leading web hosting company on its sale to Oakley Capital
Nov 2011
acquired by
  • Sector: Cloud Managed Services
  • Deal Type: Founder-led Businesses; Private Equity Deals
  • Engagement type: Sellside
  • Size: <$200m
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Arma Partners is pleased to announce that it acted as exclusive financial adviser to intergenia AG (“intergenia”) on the sale of a 51% stake to Oakley Capital Private Equity LP (the “Fund”). Oakley Capital Private Equity LP is an unlisted UK and European mid-market private equity fund with the aim of providing investors with significant long term capital appreciation.

As part of the transaction, Oakley Capital Investments Limited (AIM: OCL) will be providing €10 million of senior financing, with the Fund providing an additional €30 million of equity financing to fund the acquisition. Management and the founders will retain a 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 be completed on 31 December 2011.

intergenia is 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. intergenia owns data centres in Strasbourg (France) and St. Louis (USA) and also owns WorldHostingDays, which operates the largest series of hosting conferences worldwide.

This transaction further illustrates Arma Partners’ leadership in advising companies in the web hosting sector leveraging Arma’s deep domain expertise, understanding of the buyer universe and first class execution skills.

– intergenia is a leading European and US hosting services provider, headquartered in Cologne, Germany

– Through its three principal brands PlusServer, serverloft and Server4You, intergenia offers managed, dedicated and cloud hosting solutions to a geographically diversified customer base composed mainly of SMEs

– The business owns two data centres in Strasbourg (France) and St Louis (USA), and also owns WorldHostingDays, which operates the largest hosting conferences worldwide

– Oakley Capital Limited is an asset management and financial advisory business with over $1 billion of assets under management

– Its private equity arm, Oakley Capital Private Equity, is a mid-market fund with over €280 million of committed capital, investing in the UK and Western Europe

– Oakley Capital is a seasoned investor in the hosting services space, having acquired and subsequently sold Host Europe

– intergenia has been recognized as one of the most innovative and efficient service providers in Europe in managed, dedicated and cloud hosting

– Having made several prior investments in the hosting services sector, Oakley Capital will provide financial and strategic support to management in taking the business to the next stage of its development

– The hosting market in Europe and North America is expected to grow at between 15% and 20% per annum through to 2013 according to Tier1 Research estimates. intergenia is well positioned to benefit from the market trend and achieve further growth both domestically and internationally and makes an attractive addition to Oakley Capital’s portfolio

– Arma Partners provided comprehensive advisory services to the founders of intergenia, including financial analysis, strategic positioning, valuation, marketing materials preparation, buyer / investor communication, due diligence and transaction negotiation

– Arma Partners contacted its extensive network of potential strategic partners and financial sponsors to explore value-enhancing transactions

– The transaction illustrates Arma Partners’ leadership in advising companies in the hosting services sector leveraging Arma’s deep domain expertise, understanding of the buyer universe and first class execution skills