Post-merger, Silver Lake will be a majority stakeholder in the enlarged cloud business management solutions provider, while Oakley Capital, KKR, and AltaOne will be minority stakeholders
Cegid, a provider of cloud business management solutions based in France, and Spanish software firm Grupo Primavera have agreed to combine in an all-share deal that values the enlarged entity at nearly €6.8bn.
Grupo Primavera is also engaged in providing cloud business management software. It was formed by Oakley Capital through a series of 12 acquisitions.
Cegid serves finance, retail, human resources, certified public accountants (CPAs), and entrepreneurial sectors with its business management solutions. The French company, which is backed by Silver Lake, had revenues of €632m in 2021.
Upon closing of the merger, Silver Lake will be a majority stakeholder in the enlarged Cegid. Oakley Capital, KKR, and AltaOne will be minority stakeholders in the enlarged cloud business management solutions provider.
Last year, KKR acquired a minority stake in Cegid in a deal that valued the French software company at €5.5bn.
Cegid CEO Pascal Houillon said: “Joining forces with Grupo Primavera is an immense opportunity for both companies and our respective clients.
“Like Cegid, Grupo Primavera offers useful and innovative solutions to partners and customers in the cloud, and has achieved impressive growth specifically across Spain, Portugal, and Africa.
“We share an inspiring vision for the future driven by continuous product and technology innovation, and Cegid is fully committed to investing in the combined company’s continued growth.”
Currently, Grupo Primavera is said to employ 800 people. Its revenue in 2021 was €76m.
The Spanish company is claimed to serve 165,000 paying customers with a variety of cloud-based software solutions covering accounting, invoicing, and enterprise resource planning (ERP).
Grupo Primavera CEO Santiago Solanas said: “We are strongly aligned with Cegid’s vision and ambition and have long admired the company. Like Cegid, we have an entrepreneurial and passionate culture with a focus on product excellence, a commitment to customers, and an exciting vision for growth.
“This is a powerful partnership that will allow us to combine resources and expertise, bringing customers new products and continued innovation, as well as building on our proven track record to expand and integrate new talent and approaches to market needs.”
The transaction, which is subject to some conditions, is expected to close in the third quarter of this year.