Permira weighs taking private IT group Exclusive Networks, sources say

Adevinta ASA

14/03/2024 16:13

(Updates with background in paragraphs 5 to 11)
    By Amy-Jo Crowley
       LONDON, March 14 (Reuters) - The largest shareholder in
Exclusive Networks  EXN.PA  has been weighing taking private the
French cyber security specialist, less than three years after
its stock market debut, people familiar with the matter told
Reuters. 
    Buyout group Permira has been considering teaming up with 
investors, such as private equity funds, following expressions
of interest in jointly bidding for the outstanding shares of the
Paris-listed company, which has a market value of 1.65 billion
euros ($1.8 billion) the people said.
    The deliberations are at an early stage and Permira may
decide not to proceed with any deal, the sources said, speaking
on condition of anonymity because the matter is private. 
    Permira and Exclusive Networks declined to comment.
    Any bid would be the latest in a string of European
transactions where shareholders have bought companies that have
struggled to perform on public markets. 
    Permira and Blackstone last year agreed to take Norwegian
online classifieds group Adevinta off the stock market for about
141 billion Norwegian crowns ($13 billion). Permira was already
a minority shareholder in the business.  
    The largest shareholders of French music company Believe
 BLV.PA , including CEO Denis Ladegaillerie and U.S. investment
firm TCV, are at the centre of a bidding war to take the company
private with the help of Swedish buyout firm EQT.  
    EQT last August offered to buy outstanding shares in Suse, a
German software group in which it owned a 79% stake, at about
half the valuation at which EQT listed the business in April
2021.
    Shares in Exclusive Networks closed at 18.04 euros on
Wednesday, down 9.8% from their initial public offering price of
20 euros in 2021. The stock has not traded much above its issue
price in that time, but rose over 7% on the Reuters report of
Permira's interest on Thursday. 
    Exclusive Networks' earnings before interest and tax (EBIT)
rose 21% to 186 million euros last year, while revenues
increased 14% to 5.1 billion euros. 
    The company sells cybersecurity and cloud software on behalf
of IBM and others to businesses around the world. It was founded
in 2003 and has offices globally, including in Africa, Europe,
the Middle East and North America.  
    ($1 = 10.5618 Norwegian crowns)

 (Reporting by Amy-Jo Crowley
Editing by Anousha Sakoui and Mark Potter)
 ((amy-jo.crowley@thomsonreuters.com))