EdRip, BPI France back second Travelsoft MBO

Alice Tchernookova
26 July 2016

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Three years after an MBO involving MBO Partenaires and A Plus Finance, the management team of French travel platform Travelsoft has been backed by two new sponsors.

Edmond de Rothschild Investment Partners (EdRip), via its Cabestan Capital vehicle, and BPI France, through its France Investissement Tourisme fund, have joined the pool of investors.

In 2013, CEO and founder Chrisitian Sabbagh had raised his stake in the company from 23% to 40% through an MBO led by MBO Partenaires and supported by A Plus Finance. Sabbagh has now become the majority shareholder in the company.

While MBO Partneraires has now fully exited the group, A Plus chose to renew its support to the group, having previously provided mezzanine debt for the first MBO in 2013.

According to A Plus, exiting investors have reaped a 1.7x multiple return and a 20.5% IRR following the transaction.

With the help of new investors, the software service will mostly focus on developing its activity outside of France – in Spain and the UK in particular – aiming to double its impact on turnover from 15% to 30%.

The company will also look at bolt-on opportunities, having already identified a few target companies in France and abroad.

The transaction marks the 17th investment made by EdRip from its Cabestan vehicle, which is almost (94%) fully invested.

Senior debt was provided jointly by Societe Generale, HSBC France and LCL for the deal. It comprises A and B tranches amounting to €9m, according to local media reports.

Previous funding
In July 2013, MBO Partenaires along with CEO Christian Sabbagh acquired Travelsoft in an MBO transaction. A Plus provided mezzanine funding for the transaction, which marked the exit of previous investors Viveris Management and Stepar.

Company
Established in 2000, Travelsoft develops a software-as-a-service platform for the travel industry. Headquartered in Paris, the company generated €10m of revenues in 2015 and employs 60 people. Customers include travel groups such as Havas Voyages, Viajes Carrefour, Leclerc Voyages, Lastminute.com, GoVoyages, Opodo and e-Dreams.

People
Edmond de Rothschild Investment Partners – Mayeul Caron (investment director); Pierre Cavalier (senior associate).
A Plus Finance – Alexandre Villet, Romain Bled (investment directors).
BPI France – François Picarle (investment director); Elyssa Maufras du Chatellier (deputy investment director).

Advisers
Equity – Exelmans Audit & Conseil, Stéphane Dahan, Manuel Manas, Richard Dahan (financial due diligence); Kerisit Consulting, Jean-Marc Kerisit (commercial due diligence); PDGB Avocats, Madia Iliopolou (legal); STC Partners, Delphine Bariani, Bertrand Araud, Anne-Sophie Poncet, Marie Gabiano (legal).
Vendor – Financière Cambon, Morgann Lesné, Jonathan Journo (corporate finance); HPML, Thomas Hermetet (legal).
Company – Piotraut Giné Avocats, Raphaël Piotraut, Suzanne de Carvalho (legal).