HG CAPITAL takes majority stake in LUMESSE EX STEPSTONE SOLUTIONS
Context
German media conglomerate Axel Springer, acting through its subsidiary StepStone ASA, has entered into a binding agreement to divest its talent management software division, StepStone Solutions (now Lumesse), to European sector-focused private equity firm HgCapital. Executed as a strategic corporate carve-out, the transaction is expected to close by the end of April 2010, subject to customary closing conditions. Following the completion of the deal, Axel Springer will continue to independently own and operate StepStone’s core online job board business. For the acquirer, the buyout aligns perfectly with HgCapital's TMT investment thesis, which specifically targets mission-critical "Software as a Service" (SaaS) platforms. The target exhibits highly attractive fundamentals, including a strong recurring revenue profile (with subscriptions representing over 60% of total top-line) and an outstanding customer retention rate of approximately 95%. Operating within a rapidly expanding market growing at 15% to 20% annually, the business demonstrates robust organic momentum. HgCapital intends to partner closely with the management team to drive further subscription revenue growth through enhanced cross-selling and up-selling to the existing client base. Additionally, the sponsor will focus on cost optimization to drive significant margin improvements while accelerating international expansion via targeted bolt-on acquisitions.
LUMESSE EX STEPSTONE SOLUTIONS, which reported an EBITDA margin of [members only] in 2009, is valued in this transaction at an EV/EBITDA multiple of [members only], to compare with the average currently observed in the TMT (Tech, Media, Telecom) sector (14.7x).
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Target
Lumesse (formerly StepStone Solutions) is a premier European SaaS vendor specializing in advanced talent acquisition and talent management software. Recognized as a clear leader within its sector, the company strategically supports a highly diversified global base of over 1,400 customers. With a dedicated workforce of approximately 450 employees operating across 17 countries, the business combines a robust historical footprint in Europe with accelerating international momentum, particularly across the US and Asia-Pacific markets.
Ent. Value
€100–350M
Equity Value
[members only]
Multiples
EV / Revenue
1x–3x
EV / EBITDA
[members only]
EV / EBIT
[members only]
Historical Financials (EUR)
Other operations with LUMESSE EX STEPSTONE SOLUTIONS
Other operations with LUMESSE EX STEPSTONE SOLUTIONS
| Date | Acquirer | Target | Country | Sector |
|---|---|---|---|---|
| 10/2018 | SABA SOFTWARE | LUMESSE EX STEPSTONE SOLUTIONS | GERMANY | ERP, HR & Finance |
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REFERENCES
Valuation range: EV €100–350M
Revenue range: €50–100M
EV/Revenue range: 1x - 3x
Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of LUMESSE EX STEPSTONE SOLUTIONS by HG CAPITAL are reserved for mynth community members. Register for free to unlock full data.
Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.
Acquirer: hg capital