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Oakley Capitral disposes of Verivox for an initial consideration of EUR200 million

Oakley Capital Investments Limited is to dispose of Verivox to ProSiebenSat.1 (P7S1), for an initial cash consideration of EUR200 million with further consideration of up to EUR50 million dependent on Verivox’s financial performance in 2015. 

OCIL will continue to hold a minority interest in Verivox, through its commitment to Fund II, as will Verivox's founders. P7S1's holding in Verivox will be 80 per cent following completion of the transaction.
 
The transaction is expected to generate a 15x gross money multiple for Fund I, with an IRR of 73 per cent, based on a company value of EUR200 million, increasing to 19x and 76 per cent if the full earnout is paid.  As previously announced, Fund I is now fully invested and following the Verivox disposal will have generated a gross money multiple of 2.3x and an IRR of 39 per cent on a realised and unrealised basis since its inception in 2007. 
 
Over the last six years, under Fund I’s ownership, Verivox has gone through a significant transformation. It has not only consolidated its position as Germany’s largest independent consumer price-comparison portal for energy, but also launched new price-comparison product verticals including car and other insurance, loans and mortgages, diversifying its revenue stream. In addition, Verivox introduced offline advertising, significantly increasing brand awareness and professionalised its management structure, reporting and corporate governance.
 
Fund I held a controlling stake in Verivox alongside Verivox’s founders. OCIL’s indirect economic interest in Verivox is valued at EUR38.7 million, based on the initial cash consideration disclosed in this announcement.
 
Mark Joseph, Partner of Oakley Private Equity, says: "This transaction is another example of Oakley’s expertise in the online sector and its ability to identify founding entrepreneurs and partner with them to professionalise and grow their companies. It also demonstrates our ability to generate superior returns to our investors through true operational improvements. We thank Chris Öhlund and the Verivox management team for their impressive performance and look forward to working with them and ProSiebenSat.1 as minority investors to further accelerate the dynamic development of Verivox in the future.”
 
Peter Dubens, Managing Partner of Oakley Private Equity, says: “Following the sale of the Verivox stake, Fund I, which was launched in 2007, will have a gross money multiple of 2.3x and IRR of 39 per cent, on realised and unrealised basis, and still holds three remaining portfolio companies, namely Time Out , Educas and Broadstone . At the same time, Fund II, launched in 2013, has experienced good deal flow and is already more than 60 per cent invested, with six remaining portfolio companies, including controlling stakes in North Sails Technology Group , Parship, Facile and Damovo.”
 
Completion of the Verivox transaction is conditional on, inter alia, approval from the German Federal Cartel Office.

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