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Transactions 09 March 2020

Sfeir x Andera Partners x UI Gestion

Cession
Secteur Consulting & Technology Services
The SFEIR Group steps up its growth with support from Andera Partners and a reinvestment by UI Gestion.
Client Sfeir

SFEIR is a leading software development consulting firm that employs more than 600 people, including 550 developers. With solid roots and an ability to deliver software in an agile fashion, SFEIR leads the way among neo-digital services companies. The solutions developed by SFEIR are used by hundreds of organisations, helping them effectively implement cloud, data, web and mobile services. SFEIR has based its development on organic growth by leveraging its expertise in technology strategy, design and production. SFEIR's approach allows it to quickly deliver concrete results and tackle its customers’ most difficult technological challenges. Today, few companies are capable of delivering the know-how of top software development experts that large accounts need to become digital natives. SFEIR currently operates in Paris, Lille, Strasbourg, Nantes, Bordeaux and Luxembourg. www.sfeir.com

Contrepartie Andera Partners

Created in 2001 as part of the Edmond de Rothschild Group, Andera Partners is a leader in investments in unlisted companies in France and internationally. It manages more than €2.3 billion in investments in life sciences (BioDiscovery), growth and buyout capital (Winch Capital in mid-caps and Cabestan Capital in small-caps) and sponsorless mezzanine debt (ActoMezz). Based in Paris, Andera Partners is an AMF-authorised asset management company that employs 64 people, 40 of whom are investment professionals. Andera Partners is 100% owned by its teams and focuses on service to business owners and respect for its partners. The company is also a signatory to the iC20 (Initiative Carbone 2020) of France Invest and the United Nations Principles for Responsible Investment (UNPRI), which encourage the adoption of best environmental, social and governance (ESG) practices. ActoMezz is the team in charge of Andera Partners’ mezzanine and minority capital investments. With more than €700 million under management, ActoMezz offers mezzanine debt, mainly sponsorless, and at times minority capital investments to support management teams seeking to acquire or strengthen their majority stake or finance growth projects. www.anderapartners.com

Contrepartie UI Gestion

UI Gestion is an independent investment company that manages over €750 million on behalf of leading institutional investors, entrepreneurs and family offices. A long-standing private equity player for more than 50 years, UI Gestion supports start-up companies by helping their managers implement growth projects and buyout or growth capital transactions. The UI Academy provides managers with additional tools to strategically define their project and ensure its operational implementation. Since becoming independent in 2004, UI Gestion has raised over €1.3 billion through three investment platforms (regional, national and sectoral) and supported nearly 140 companies operating mainly in the healthcare, agro-business and B2B services sectors. With more than 25 employees and regional offices in Nantes, Rennes, Reims, Strasbourg and Lille in addition to its head office in Paris, UI Gestion is a major player in investment in France and currently supports more than 45 companies. The Cap Entrepreneurs 1 and Cap Entrepreneurs 2 FPCI support start-up SMEs in the Paris region, Hauts-de-France and Centre Val-de-Loire. This new investment in SFEIR is the 12th transaction completed in these regions through these two funds. www.uigestion.com

After a first management buyout phase supported by UI Gestion in 2017, the SFEIR Group is completing a new transaction with support from Andera Partners, which is investing through its ActoMezz mezzanine fund.

This transaction will allow the management team led by Bruno Le Forestier and Didier Girard to increase their stake in the group’s capital while leaving the majority stake to the long-time shareholder, former CEO Pierre Dalmaz. This capital increase is the result of an all bond investment by Andera Partners. UI Gestion is reaffirming its support for the group by remaining a shareholder.

Based in Neuilly-sur-Seine, the SFEIR Group is a neo-digital services company and a leading French provider of IT developers for businesses. The group employs 600 people, including 550 developers, who help nearly 250 customers of all sizes and from all sectors with their digital transformation. The group anticipates nearly €64 million in turnover in 2020 compared with €36 million in 2017. Its goal is to again double in size over the next five years.

Founded in 1985, since 2012 SFEIR has specialised in making high-level expert developers available in response to businesses’ growing demand for qualified resources specialised in the complex issues relating to the transformation of their business model using digital tools. Today, SFEIR is recognised as a market maker that is able to address the strategic needs of companies – particularly large accounts – by delivering cutting-edge technological solutions that are distinctive, disruptive and create value.

The investment made by Andera Partners and UI Gestion gives SFEIR the means to continue its change of scale and strengthen its positioning as a key player in the market. This is the 16th investment by the ActoMezz III professional private equity fund (FPCI), which closed in July 2017.

“We are delighted to have Andera Partners by our side, and very proud of the confidence expressed by UI Gestion, which continues to support us in our development. This transaction strengthens the SFEIR Group’s self-reliance and our agility in a highly consolidated market. SFEIR is an entrepreneurial endeavour that aims to help companies create value through digital technology. To do this, we deliver the latest methods and practices of Silicon Valley pure players to our customers to help them understand constantly evolving technologies”, said Bruno Le Forestier and Didier Girard, SFEIR’s managers.

“In addition to the group’s excellent track record and unique positioning, what won us over was the entire management team’s enthusiasm regarding SFEIR’s growth prospects”, said Stéphane Bergez, Partner at Andera Partners and Head of ActoMezz.

“SFEIR’s business plan is remarkable for two reasons: first because it is based solely on natural growth, and secondly because its aim is to be able to deploy high-level consultants and master the latest technological skills for innovative projects”, said Pierre Dalmaz.

“Further support for SFEIR’s growth plans was obvious for UI Gestion, given the premium positioning of the services provided which easily meet market demand, its ability to scale its organisation, and the quality of its management team”, stated Antoine Bertin, Investment Director at UI Gestion.

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