TIDMOCI
RNS Number : 0713O
Oakley Capital Investments Limited
08 June 2022
8 June 2022
Oakley Capital Investments Limited
Oakley Capital Investments Limited(1) ("OCI") is pleased to
announce that Oakley Capital Fund IV(2) ("Fund IV") has reached an
agreement to sell its stake in Contabo, a leading cloud hosting
platform used by SMEs.
OCI's share of proceeds will be c.GBP59 million and the sale
represents a c.105% premium to the 31 March 2022 carrying value, an
uplift of c.17 pence per share to the Company's NAV.
As part of the transaction, Oakley Capital Fund V ("Fund V")
will invest in Contabo alongside KKR. OCI's indirect contribution
via Fund V will be c.GBP37 million.
Note that the above figures only relate to OCI's share of
proceeds and its share of Fund V's overall investment in
Contabo.
OCI's liquid resources available for future deployment
(including this transaction) are estimated to be c.GBP178
million.
Further details on the transaction can be found in the below
announcement from Oakley Capital(3.)
Oakley Capital agrees sale of Contabo and follow-on
investment
Oakley Capital ("Oakley") is pleased to announce that Oakley
Capital Fund IV ("Fund IV") has reached an agreement to sell its
stake in Contabo, a leading cloud hosting platform offering
easy-to-use and cost-effective cloud services used by SMEs,
entrepreneurs and developers. The exit will generate a gross return
in excess of 10x MM and over 100% IRR to Fund IV. As part of the
transaction, Oakley Capital Fund V ("Fund V") will acquire a
minority stake in Contabo alongside majority investor KKR, to
benefit from the anticipated future growth of the business.
Fund IV first invested in Contabo in 2019 alongside proven
hosting entrepreneurs Thomas Strohe, Jochen Berger and Thomas
Vollrath who introduced the opportunity to Oakley. Under Oakley's
ownership, Contabo has generated strong revenue and EBITDA growth
to become a leading SME cloud hosting provider with 24 lean and
highly efficient data centres across four continents serving a
diversified mix of more than 250,000 customers. In 2020, Czech
hosting business VSHosting was acquired to expand Contabo's
international footprint, followed by GPORTAL in 2021, a rapidly
growing 'platform-as-a-service' provider in the gaming space.
The strategic partnership with KKR and fresh investment from
Oakley will support the next stage of Contabo's growth plan
including acquisitions, and enable Contabo to continue its
successful growth journey to become a global leader in SME cloud
hosting. The company is well positioned in a market that has shown
very strong and resilient growth in recent years, driven by
structural trends and market dynamics, including increasing data
traffic, the ongoing digitisation of small businesses as well as
the increasing use of cloud applications.
Contabo CEO, Thomas Noglik, commented:
"When we first invested in Contabo three years ago, the business
was very much a relatively unknown, subscale player in the domestic
German web-hosting market. In partnership with Oakley, we leveraged
our combined experience in cloud hosting and our track record in
successfully professionalising businesses to transform Contabo into
the market-leader it is today. We're pleased to be continuing our
collaboration with Oakley and now with KKR's support and sector
expertise as we proceed with the next stage of the company's growth
plan."
Jean-Pierre Saad, Partner and Head of Technology for Private
Equity in EMEA and Laura Schröder, Director at KKR, commented:
"The demand for cloud infrastructure and hosting services has
considerably accelerated over recent years, and is set to further
increase due to the ongoing digitalisation of small businesses and
secular growth of the developer community. With its differentiated
positioning in the market based on price-performance leadership and
strong customer satisfaction, Contabo benefits from these market
trends. We are excited by the opportunity to work with the
management team and Oakley to unlock the significant potential in
Contabo, drawing on our extensive expertise from investing in the
cloud and hosting industry globally."
Oakley Capital Managing Partner, Peter Dubens, commented:
"Over more than a decade, Oakley has built significant expertise
investing in the attractive web-hosting sector. We are pleased to
sustain our strong track record with Contabo, and look forward to
continuing our partnership with management to deliver on our
ambition for the company. We also welcome KKR as co-investors with
their deep experience in technology investing and the DACH
region."
- ends -
For further information please contact:
Oakley Capital Limited
+44 20 7766 6900
Steven Tredget
Greenbrook Communications Limited
+44 20 7952 2000
Rob White / Michael Russell
Liberum Capital Limited (Financial Adviser & Broker)
+44 20 3100 2000
Chris Clarke / Darren Vickers / Owen Matthews
Notes:
LEI Number: 213800KW6MZUK12CQ815
(1) About Oakley Capital Investments Limited ("OCI")
OCI is a Specialist Fund Segment ("SFS") traded investment
vehicle that aims to provide shareholders with consistent long-term
capital growth in excess of the FTSE All-Share Index by providing
liquid access to private equity returns through investment in the
Oakley Funds.
A video introduction to OCI is available at
https://oakleycapitalinvestments.com/videos/
The contents of the OCI website are not incorporated into, and
do not form part of, this announcement.
(2) The Oakley Funds
Oakley Capital Private Equity L.P. and its successor funds,
Oakley Capital Private Equity II, Oakley Capital Private Equity
III, Oakley Capital IV, Oakley Capital V and Oakley Capital Origin
Fund are unlisted lower-mid to mid-market private equity funds that
aim to provide investors with significant long-term capital
appreciation. The investment strategy of the Funds is to focus on
buy-out opportunities in industries with the potential for growth,
consolidation and performance improvement.
(3) Oakley Capital, the Investment Adviser
Founded in 2002, Oakley Capital Limited has demonstrated the
repeated ability to source attractive growth assets at attractive
prices. To do this it relies on its sector and regional expertise,
its ability to tackle transaction complexity and its deal
generating entrepreneur network.
Important information
Specialist Fund Segment securities are not admitted to the
Official List of the Financial Conduct Authority. Therefore, the
Company has not been required to satisfy the eligibility criteria
for admission to listing on the Official List and is not required
to comply with the Financial Conduct Authority's Listing Rules.
The Specialist Fund Segment is intended for institutional,
professional, professionally advised and knowledgeable investors
who understand, or who have been advised of, the potential risk
from investing in companies admitted to the Specialist Fund
Segment.
This announcement may include "forward-looking statements".
These forward-looking statements are statements regarding the
Company's objectives, intentions, beliefs or current expectations
with respect to, amongst other things, the Company's financial
position, business strategy, results of operations, liquidity,
prospects and growth. Forward-looking statements are subject to
risks and uncertainties because they relate to events and depend on
circumstances that may or may not occur in the future. Accordingly
the Company's actual future financial results, operational
performance and achievements may differ materially from those
expressed in, or implied by, the statements. Given these
uncertainties, prospective investors are cautioned not to place any
undue reliance on such forward-looking statements, which speak only
as at the date of this announcement. The Company expressly
disclaims any obligation or undertaking to update or revise any
forward-looking statements contained herein to reflect actual
results or any change in the Company's expectations with regard to
them or any change in events, conditions or circumstances on which
any such statements are based unless required to do so by the
Financial Services and Markets Act 2000, the Listing Rules or
Prospectus Regulation Rules of the Financial Conduct Authority or
other applicable laws, regulations or rules.
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END
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