Disposal of Verivox

RNS Number : 3338R

Oakley Capital Investments Limited

26 June 2015

 

26 June 2015

Oakley Capital Investments Limited

Disposal of German online price comparison business Verivox for an initial consideration of €200 million

Investment generates 15x money multiple and 73% IRR

Oakley Capital Investments Limited (AIM:OCL, OCIL, the "Company"), the AIM company established to provide investors with access to the investment strategy being pursued by Oakley Capital Private Equity L.P. ("Fund I") and its successor fund, Oakley Capital Private Equity II ("Fund II", together the "Funds"), announces Fund I's agreement to dispose of Verivox to ProSiebenSat.1 ("P7S1"), for an initial cash consideration of €200 million with further consideration of up to €50 million dependent on Verivox's financial performance in the year to 31 December 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% following completion of the transaction.

The transaction is expected to generate a 15x gross money multiple for Fund I, with an IRR of 73%, based on a company value of €200 million, increasing to 19x and 76% 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% 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 €38.7 million, based on the initial cash consideration disclosed in this announcement.

Mark Joseph, Partner of Oakley Private Equity, commented:

"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, commented:

"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%, 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% 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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For further information please contact:
Oakley Capital Investments Limited	[phone]
Peter Dubens (Director)
FTI Consulting	[phone]
Edward Bridges / Emily Desmier
Liberum Capital Limited (Nominated Adviser & Broker)	[phone]
Steve Pearce / Tom Fyson

About Oakley Capital Investments Limited ("OCIL")

Oakley Capital Investments Limited is a Bermudan based company listed on AIM. OCIL seeks to provide investors with long term capital appreciation through its investment in Oakley Capital Private Equity L.P., Oakley Capital Private Equity II and, over time, through co-investment opportunities.

About Oakley Capital Private Equity L.P. ("Fund I") and Oakley Capital Private Equity II ("Fund II")

Oakley Capital Private Equity L.P. and its successor fund, Oakley Capital Private Equity II, are both unlisted mid-market private equity funds with the aim of providing investors with significant long term capital appreciation. The investment strategy of both funds is to focus on buy-out opportunities in industries with the potential for growth, consolidation and performance improvement. Both funds seek to invest in companies with scale in their industry subsectors, thereby creating a sustainable earnings stream which should command a premium on exit.

 

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