Keensight Capital is to acquire a majority stake in Smile, a European specialist in digital and open source.
Keensight Capital, which has built a strong partnership with Smile over the years having first invested in the company from 2013 to 2017, will replace Eurazeo PME as majority shareholder. Eurazeo PME will also be reinvesting in the company, alongside the management team and the employees.
Founded in 1991, Smile has been a technology pioneer and is now the European market leader in digital based projects on open source technologies. The company combines technical and business expertise in areas ranging from digital technology, E-business and the Internet of Things to embedded systems, IT infrastructures and business apps. Its unique service offering provides businesses with cutting-edge open source solutions designed to release the unexploited innovation potential that lies in all companies.
Based in Paris and with offices in 7 countries, Smile employs 1,700 experts working each year on hundreds of strategic digital projects for large corporate clients, across Europe. The company has a proven track record in completing strategic acquisitions, such as Virtua, Adyax and SensioLabs in 2018.
With an annual revenue of EUR102.5 million in 2018 and of circa EUR130 million in 2019 the company has experienced a strong and steady annual growth (+20% yearly since 2007) and is hence expecting an annual revenue of EUR200 million in 2022.
Marc Palazon, Chairman of Smile’s Executive Board, says: “In sync with Keensight Capital and Eurazeo PME’s investment philosophy, we think one step ahead. Our ambition is to establish ourselves as the next European digital champion, through both organic growth and bolt-on acquisitions. We are confident that the guidance of two of the best European investment teams coupled with the roll-out of the second part of our Open Arrow strategy would enable us to make open source the main vector for digitalization in Europe.”
Philippe Crochet, Managing Partner at Keensight Capital, says: “For our new investment through Keensight V, our recently raised EUR1 billion fund, we are proud to have the opportunity to partner yet again with Marc Palazon, a highly talented manager with whom we have collaborated from 2013 to 2017, and his highly recognised teams. With its unique open source DNA and its limitless capacities, Smile’s growth potential is extraordinary, especially at an international level. We are very excited to keep exploring new opportunities together.”
Pierre Meignen, Managing Director at Eurazeo PME, says: “We are delighted to renew our support to such a rare and ambitious company. Smile’s European footprint as well as its solid positioning testify to its unique growth capacity which continues to impress us daily.”
