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Cinven
Oakley advises Cinven on £438m Host Europe acquisition
Completed Transactions - Cinven Logo
Sector:
Hosting & Datacentres
Transaction Type:
Acquisition
Date:
July 2013
Deal Value:
£438m

Oakley Capital Corporate Finance (“Oakley”) has advised European private equity firm Cinven on its agreed deal to buy Host Europe Group (“Host Europe” or the “Company”) from Montagu Private Equity (“Montagu”) for a total consideration of £438m. The agreement to buy Host Europe underlines Oakley’s credentials and focus on the hosting and data centre market and is Oakley’s largest M&A deal since the corporate finance firm was founded in Autumn 2007.Headquartered in the UK, Host Europe is a leading European provider of hosting and domain services to small and medium enterprises (“SMEs”), with around 600 employees. It offers an end-to-end product suite including domain registration, application hosting, cloud hosting and managed hosting targeting SMEs, with most of its revenues generated in the UK and Germany.

Host Europe has a track record of strong growth in revenues and EBITDA of 16% and 23%CAGR, respectively, for the past 4 years and is expected to continue to generate double digit growth in 2013.

Oakley and its Joint Managing Partner Chris Godsmark have advised on several deals with Host Europe over the past decade. Oakley previously advised Host Europe on its sale to Montagu for £222m in October 2010, while Chris Godsmark advised Pipex Communications PLC on its acquisition of Host Europe PLC for £31m in April 2004. Guy Hayward-Cole, Managing Director, Daniel Havercroft, Director and Anthony Yaneza, Senior Associate worked on the transaction.

Chris Godsmark, joint Managing Partner of Oakley, said

“I have worked on deals with Host Europe for almost ten years, including the sale to Montagu in 2010 and with Cinven on the “buy-side”. We are one of the leaders in global hosting transactions and the sector remains as busy as ever for us as we build on our detailed sector knowledge and relationships with many of the players in the industry.”

Daniel Havercroft, Director, said

“Host Europe has grown rapidly under an exceptionally talented management team to become one of the leading global providers of hosting for SMEs. It was a pleasure to work with Cinven, which is backing the management team for the next phase of growth. We see huge long term growth in the market opportunity for the provision of increasing complex and business critical hosted applications for SME and Host Europe is well placed to enhance its position as a leader in this market.”

For further information, please contact:

Chris Godsmark, Partner
Daniel Havercroft, Managing Director
+44 207 766 6900

*Completed by Oakley Capital Corporate Finance

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