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02/2021

SOGETREL acquired by ANDERA PARTNERS

FRANCE Telecom / Infrastructures EV €300–700M

Context

Sogetrel's management regained majority control of the group by buying out Latour Capital and its partners. The transaction was structured as a sponsorless MBO, backed by mezzanine financing from ActoMezz. The valuation increase since since its last valuation from 2018 reflects the group's explosive growth in the fiber optic market. This structure allows management to execute a long-term diversification strategy into Smart Cities and 5G infrastructure without the constraints of a traditional majority private equity fund.

It is worth noting that the fund Quilvest Capital Partners / Bpifrance took control of Sogetrel through an LBO in 2016.

SOGETREL, which reported an EBITDA margin of [members only] in 2020, is valued in this transaction at an EV/EBITDA multiple of 5x–12x, representing a discount to the average currently observed in the TMT (Tech, Media, Telecom) sector (14.6x).

-> Deep-dive in TMT (Tech, Media, Telecom) market trends

Target

Sogetrel is a leading French specialist in the integration and maintenance of telecom networks and digital solutions. The group is a major player in the "France Très Haut Debit" plan (high-speed broadband). It has diversified into "Smart Cities" (video protection, IoT) and IP Security (access control, alarms) to prepare for the post-fiber era. At the time of the deal, it employed over 5,000 people.

Ent. Value

€300–700M

Equity Value

[members only]

Multiples

EV / Revenue

below 1.5x

EV / EBITDA

5x–12x

EV / EBIT

[members only]

Historical Financials (EUR)

Year
Rev
EBITDA
EBIT
2020
€450–900M
€25–50M
[members only]
2019
€450–900M
€25–50M
[members only]

Other operations with SOGETREL

Other operations with SOGETREL

List of similar M&A transactions (Date, Acquirer, Target, Country, Sub-sector)
DateAcquirerTargetCountrySector
09/2018LATOUR CAPITAL / BPIFRANCE / BNP PARIBAS DEVELOPPEMENTSOGETRELFRANCEInfrastructures
01/2016QUILVEST CAPITAL PARTNERS / BPIFRANCESOGETRELFRANCEInfrastructures

REFERENCES

Valuation range: EV €300–700M

Revenue range: €450–900M

EBITDA range: €25–50M

EV/Revenue range: below 1.5x

EV/EBITDA range: 5x - 12x

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of SOGETREL by ANDERA PARTNERS 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: andera partners