Oakley Capital selling Damovo – Oakley Capital Investments Limited says that Oakley Capital Private Equity II has reached an agreement to sell its stake in Damovo Group, a leading independent European unified communications and collaboration company, to Eli Global. The transaction, which is subject to regulatory approval, values Damovo at up to EUR140 million, comprising an upfront consideration of EUR115 million and further consideration of up to EUR25 million, dependent on Damovo’s financial performance in the year to 31 January 2019.
The company will realise cash proceeds of approximately GBP12.5 million on completion of the sale, with future proceeds of up to GBP2.9 million. The full realisation would represent an increase of GBP1.7 million to the December 2017 NAV, lifting the NAV per share by up to 1 pence.
Oakley invested in Damovo in 2015, in a proprietary deal that was sourced via Oakley’s network of business founders and management teams, as is typical for Oakley investments. Matthew Riley, the successful UK entrepreneur and founder of Daisy, another Oakley portfolio company, identified the opportunity to acquire Damovo in a complex carve out. The underlying business units, which were in need of new investment, were consolidated into one combined and cohesive company.
Under Oakley’s ownership, Damovo has been transformed into a recognised European specialist in delivering and managing critical unified communications and collaboration solutions for enterprise and public-sector organisations. The business has returned to organic growth by winning and delivering large, multi-year managed services contracts, and this has been supported by the integration of three strategic acquisitions. This growth, as well as a more efficient group structure put in place by the experienced management team, has lead to the business more than doubling EBITDA since Oakley’s initial investment.
Christopher Wetherhill, Chairman of OCI, commented: “This is another impressive return for an Oakley investment in the Technology, Media and Telecoms sector, and is a good example of the value that Oakley can create through its network by partnering with experienced management teams and business founders, in this case Matthew Riley, on multiple occasions.”
David Till, Senior Partner at Oakley Capital Private Equity, commented: “We would like to thank Matthew Riley, Glen Williams, Stuart Hall and the team for their tireless work in transforming the business over the past three years. Damovo is now a very well-respected and competitive player in the growing European market. It has the highest levels of vendor accreditation and has won a number of awards for its excellent customer service. We are proud of the part we have played in its evolution, with the business ideally positioned for its next phase with Eli Global.”
OCI : Oakley Capital selling Damovo