17 December 2014

Oakley Capital Investments Limited

Disposal of intergenia Holding GmbH generates 2.5x money multiple and 36% IRR for Oakley Funds

Oakley Capital Investments Limited (AIM:OCL, OCIL, the "Company"), the AIM company established to provide investors with access to the investment strategy being pursued by Oakley Capital Private Equity L.P. ("Fund I") and its successor fund, Oakley Capital Private Equity II ("Fund II", together the "Funds"), announces Fund II and its co-owner Bellaxa AG's agreement to dispose of intergenia Holding GmbH and its subsidiaries ("intergenia") to HEG Co. GmbH ("Host Europe"), for an enterprise value of €210 million. The consideration will be satisfied in cash.

The transaction is expected to generate a 2.5x gross money multiple for the Funds, with an IRR of 36%.  Fund II's indirect share of the proceeds of the disposal will be distributed by the intermediate holding structure to Fund II and subsequently to its limited partners, including OCIL. OCIL will receive €21 million, which will be applied in pursuance of the Company's investment policy.  

intergenia is headquartered in Cologne and is a leading supplier of Internet hosting solutions (in particular of managed and dedicated server hosting). intergenia provides a wide range of shared, dedicated and fully-managed solutions (also in the form of cloud hosting) through its brands PlusServer, serverloft, Server4You and Unmetered.com. In addition, intergenia operates Datadock, Europe's greenest data centre. The company also runs WorldHostingDays, the largest series of hosting trade shows worldwide. intergenia generated earnings before interest, tax depreciation and amortisation ("EBITDA") of €13.8 million in the financial year ending 31 December 2013. intergenia's current run-rate EBITDA is above €20 million following recent acquisitions.

This disposal follows Fund I's agreed divestment of its 13.6% stake in Daisy Group plc ("Daisy") for a gross consideration of £67 million following Daisy's acquisition by a consortium consisting of Matthew Riley (Daisy CEO), Toscafund Asset Management LLP and Penta Capital LLP.

Fund I is now fully invested and following the Daisy disposal will have generated a gross money multiple of 2.2x and an IRR of 38% on a realised and unrealised basis since its inception in 2007, and will have returned 115% of its drawn commitments to Investors. 

Completion of the intergenia transaction is conditional on approval from the German and Austrian merger control authorities.

Peter Dubens, Director, commented:

"intergenia has successfully executed its buy and build strategy during 2014 under the excellent management of its founders, further strengthening its business as one of Germany's strongest suppliers of Internet hosting solutions. The complementary combination of intergenia and Host Europe Group will create one of the most successful and comprehensive hosting businesses in Europe and will create a strong platform for continued organic growth. On completion this will be the first disposal for Fund II and represents a good return for investors over a short period of time. This transaction is a great example of Oakley's expertise in the TMT sector and its ability to identify and back top performing entrepreneurs to rapidly grow their companies."

Further information will follow at the time of Completion.

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About Oakley Capital Investments Limited ("OCIL")

Oakley Capital Investments Limited is a Bermudan based company listed on AIM. OCIL seeks to provide investors with long term capital appreciation through its investment in Oakley Capital Private Equity L.P., Oakley Capital Private Equity II and, over time, through co-investment opportunities.

About Oakley Capital Private Equity L.P. ("Fund I") and Oakley Capital Private Equity II ("Fund II")

Oakley Capital Private Equity L.P. and its successor fund, Oakley Capital Private Equity II, are both unlisted mid-market private equity funds with the aim of providing investors with significant long term capital appreciation. The investment strategy of both funds is to focus on buy-out opportunities in industries with the potential for growth, consolidation and performance improvement. Both funds seek to invest in companies with scale in their industry subsectors, thereby creating a sustainable earnings stream which should command a premium on exit.