Advent International To Acquire Unit4 For $1.6 Billion

Posted Nov 18, 2013

Advent International has agreed to buy Unit4 for 1.15 billion euros ($1.6 billion).  Advent International will be expanding outside of Europe through this deal.  Unit4 investors will receive 38.75 euros in cash for each share they own.  This deal is supported by management and supervisory boards.  This is 10% more than the company’s stock price closing on November 15th in Amsterdam.

Advent is a private equity firm that is expected to accelerate Unit4’s transition into a provider of enterprise software-as-a-service, according to founder Chris Ouwinga. Ouwinga owns 5.6% of the Uni4 company.  Unit4 has around 85% of their business in Europe.  Advent will help Unit4 expand outside of the region.  The deal is expected to close in the first half of the year.

This transaction values Unit4 at 12.8 times the earnings before interest, taxes, depreciation, and amortization, according to Bloomberg. Unit4 is based in Sliedrecht, Netherlands and has 29.7 million shares outstanding.  Advent?s bid was the highest received offer.  Advent planned to purchase Danish software company KMD A/S in October of last year and it is still pending.  Advent complete the 1.15 billion euro purchase of 90% of France-based Oberthur Technologies in 2011.

[Source: Bloomberg]