Blackfin hires Arma for the sale of Neoxam
24 JAN 2018
Blackfin Capital Partners has mandated Arma Partners to oversee the sale of Neoxam, a French investments software specialist, a source close to and two sources briefed on the situation said.
The company had EUR 13m in EBITDA for FY17, the source close and the second source briefed said. This should increase to EUR 16m over the next year, the second source briefed added.
IMs will be sent to private equity firms and trade buyers in the next few weeks, the source close and the second source briefed said.
BlackFin acquired GP3 and Decalog, both software companies, from Sungard, a US-based financial software provider, in 2014 for an undisclosed sum, which were merged into NeoXam following the deal.
NeoXam has since acquired SmartCo, a French enterprise data management software company, and Nexfi, a French software provider specialising in fund management, in 2015 for undisclosed sums. It also bought Density Technologies, a French asset management software provider, in 2014 for an undisclosed sum.
Neoxam is an attractive business due to its low level of customer churn, a sector banker said. However, he saw room for its acquisitions to be better integrated effectively, and warned its legacy software is a bit out of date. The company specialises in software solutions for the buyside and sellside. It processes more than USD 14 trillion worth of assets per day and serves more than 10,000 users.
Competitors in the marketplace include SimCorp, a Danish investment software company, which acquired APL Italiana, an Italian investment software company, last year for EUR 35m, the second source briefed said.
Similar deals in the sector include Temenos Group’s [SWX:TEMN] acquisition of Multifonds, a fund administration software company in Luxembourg, for EUR 235m in 2015, the second source briefed and the sector banker said. The sale of Multifonds received a valuation of around 20xEBITDA , the sector banker added.
Neoxam has more than 450 employees with offices in Paris, Frankfurt, Luxembourg, Zurich, Geneva, Milan, New York, Boston, Hong Kong, Shanghai, Beijing, Tunis and Cape Town.
Blackfin and Arma declined to comment.