Schibsted is selling its shares in Basefarm to private equity fund Reiten Capital Partners VII.
The new majority owner, which is acquiring 72 per cent of the shares, has ambitious plans for the internet operations company.
“This is a milestone in the company’s almost ten-year history as a specialist in the operation of internet applications. We are getting a solid new owner which will bring us financial and strategic expertise, as well as an even better opportunity to realise our ambitions,” says Grethe Viksaas, chief executive of Basefarm.
In addition to Reiten’s holding, the other shares will be owned by Basefarm’s management (23.1 per cent), its employees (4.8 per cent) and Basefarm AS (0.1 per cent).
Reiten is paying about NOK130m for Schibsted’s 69.4 per cent holding in Basefarm. The sale values the company at NOK255m.
Christian Melby, partner in Reiten Strategic Investments AS, the fund’s exclusive investment adviser, says: “The fund invests in companies that have competent management and good potential for further growth. We intend to be an important contributor to the company’s management, to operational improvements and to assessing opportunities for organic and structural growth.”
Basefarm provides operational services to businesses that use the internet as an important channel for reaching customers, employees and partners. The company had a turnover of NOK208m in 2008 and has a subsidiary company in Sweden. Customers include Altinn, TV4, the Police, Norwegian, Canal+, Elkjøp and Dagbladet.
