Scout24 adds to German IPO jitters as shares drop below offer price: Reuters

(Reuters) Shares in German digital classified ads firm Scout24 dropped below their offer price on their trading debut on Thursday, casting a shadow over other pending flotations in Frankfurt, with some already scaling down their ambitions. Scout24 shares opened at 30.75 euros, above the issue price of 30.00 euros, but later dropped below that level, as investors viewed them as overvalued relative to their peers in Europe. The shares were down 1.8 percent at 29.45 euros by 1248 GMT, after losing as much as 2 percent, underperforming a 0.5 percent drop in Germany’s benchmark DAX index. Scout24’s market debut is being scrutinized by investors amid jittery equities markets. Volkswagen’s emissions scandal has also scared off investors, forcing plastics group Covestro to lower the price range and the number of shares on offer after failing to win enough offers for a planned 2.5 billion euro ($2.8 bln) Frankfurt IPO. Car parts maker Schaeffler is also considering scaling down the size of its flotation and will postpone it by at least a couple of days after investors voiced concern over the Volkswagen scandal and wobbly markets, sources familiar with that deal said. Still, some investors remained hopeful. “It needs more to cancel other IPOs,” said a Frankfurt-based trader. The Scout24 IPO had already been delayed from last year due to volatile equity markets, something Chief Executive Greg Ellis tried to play down on Thursday. “This was the best time to go,” Ellis told Reuters just after the shares started trading. The company had just completed an internal revamp and would not have been ready to float earlier this year when equity valuations were higher, he said. The initial public offering values Scout24’s equity at 3.2 billion euros, or about 19 times its expected core earnings including debt. That compares with an average earnings multiple of 18 times for its European peers, which include Rightmove , REA Group, Zoopla and Autotrader . After selling shares in the IPO, private equity firms Hellman & Friedman and Blackstone will own 45.7 percent in Scout24 if an overallotment option is fully exercised. German telecoms operator Deutsche Telekom will hold 12.1 percent while 35.9 percent will be widely held. Scout24 runs Germany’s biggest digital advertising portal for real estate and the country’s No. 2 car sales portal, behind Ebay’s mobile.de. It expects the digital classifieds market in those two sectors to roughly double by 2018. The company aims to use the proceeds of 230 million euros from a capital increase to reduce its debt, which stood at about 950 million euros at the end of June. It has no plans to acquire peers.

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Scout24 adds to German IPO jitters as shares drop below offer price: Reuters

Infogain to buy Blue Star Infotech’s IT group

Infogain Corp. said Tuesday that it is buying the IT operations of Blue Star Infotech Ltd. Financial terms weren’t announced. The combined entity will have revenue of over $150 million, close to 4,000 employees and eight delivery locations globally. Infogain is a portfolio company of ChrysCapital. PRESS RELEASE LOS GATOS, Calif.–(BUSINESS WIRE)–Infogain Corporation, a global business and IT consulting leader, today announced that Infogain and Blue Star Infotech, Limited (NSE: BLUESTINFO) have entered into definitive agreements under which Infogain will acquire Blue Star Infotech’s IT operations. The acquisition will expand Infogain’s digital transformation offerings, particularly in the areas of Cloud, mobility, SAP and analytics; adding specialized capabilities in the travel/hospitality, high-tech and healthcare verticals. In addition, the acquisition will strengthen and enhance the leadership position of Infogain in the areas of product engineering and test automation. Infogain provides customer-facing solutions, processes and applications that lead to a more efficient and streamlined digital customer experience for enterprises in the US, Europe, the Middle East, Asia Pacific and Indian markets. With 20%+ revenue CAGR, Infogain’s growth has outpaced industry growth by more than 50%. The company has more than doubled its revenue over the past four years and continues to see significant traction among existing as well as new clients. This acquisition will enable Infogain to expand its services portfolio to support current customers, strengthen existing retail, insurance and high-tech verticals, and enter into new verticals such as travel and hospitality. The combined entity will have revenue of over $150 million, close to 4,000 employees and eight delivery locations globally. This acquisition is being announced within weeks following a $63M Investment by ChrysCapital. Commenting on the acquisition, Sanjay Kukreja, Managing Director at ChrysCapital noted, “BSIL’s IT assets are an ideal fit for Infogain with the vision of creating a leading new age digital services platform with combined capabilities in Cloud, mobility, SAP, analytics and product engineering. We expect the combined company to grow to half a billion dollars, through organic and inorganic growth, within the next five years.” “This acquisition is another achievement toward our vision of transforming Infogain into a much larger IT services player delivering innovation and outstanding value to our clients,” notes Kapil Nanda, President and Chief Executive Officer of Infogain. “Blue Star Infotech has achieved outstanding success over recent years, and I look forward to working with its high-performance leadership and team to deliver even greater value to clients. I am extremely excited to welcome them to the growing Infogain team.” “The IT industry is evolving as never before, and we are excited by the opportunity to offer our clients increased scale of our operations as well as broader capabilities including next-generation technologies,” explains Sunil Bhatia, Chief Executive Officer and Managing Director at Blue Star Infotech. “The culmination of many years of outstanding growth nurtured by our founder Suneel Advani, this acquisition will align BSIL’s IT Business with a larger peer thereby strengthening its position in the industry.” Cynthia Stoddard, CIO at NetApp (NTAP) and a longstanding client of Infogain, commented, “Infogain’s capabilities, talent pool, and geographic presence will certainly be expanded with the acquisition of Blue Star Infotech. We are excited to continue to involve Infogain in activities around our new offerings such as NetApp Private Storage for Azure and other Cloud environments.” Kapil Nanda, President and Chief Executive Officer of Infogain, will continue in this role. Sunil Bhatia will join Infogain’s management team as its CEO designate, and will assume his new responsibilities as CEO of the combined entity on July 1, 2016. At that time, Kapil Nanda will transition to his role as full-time Executive Chairman. BSIL’s board of directors has unanimously approved the acquisition, which is expected to close towards the end of 2015, subject to BSIL shareholder approval, regulatory approvals and other customary closing conditions. Avendus Capital Private Limited is serving as the financial advisor and Talwar Thakore & Associates as the legal counsel to BSIL. Wilson, Sonsini, Goodrich & Rosati is serving as the legal counsel to Infogain Corporation. About Infogain Infogain (www.infogain.com) provides front-end, customer-facing technologies, processes and applications that lead to a more efficient and streamlined customer experience for enterprises in the US, Europe, the Middle East, Asia Pacific and India. Offering solutions for the high-tech, retail and insurance verticals, Infogain specializes in areas such as software product engineering, digital service automation and mobility. A Gold level partner of Oracle (ORCL), Infogain has outstanding Oracle capabilities for point-of-sale systems, merchandising systems, CRM systems, knowledge management systems, ERP and next generation call center capabilities. The company’s customer retention rate of 90%+ over a five-year period is a testament to the ability of the team to identify clients’ specific needs and provide best-in-class solutions across a broad spectrum of service areas. About Blue Star Infotech Ltd Blue Star Infotech Limited (www.bsil.com), a digital transformation consulting and services company, combines the best of engineering, creativity and technology to deliver the next generation of software solutions to its global customers and enable them to be future?ready. Part of the well?known Blue Star Group, Blue Star Infotech is a listed company with its global headquarters in Mumbai, India, and with operations in USA, UK, Europe, Malaysia, and Singapore. The company is focused on delivering value-added and future?proofed software solutions by leveraging emerging technologies and trends while preserving existing investments for gaining competitive advantages. About ChrysCapital ChrysCapital is a private equity firm that was started in 1999 and currently manages US $2.5B across six funds. The firm has deployed over US $2B across 70+ investments and has had 50+ successful exits. The firm’s investors include global endowments, sovereign funds, family offices, foundations and fund of funds. To learn more about ChrysCapital, please visit www.chryscapital.com.

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Infogain to buy Blue Star Infotech’s IT group

Payments startup Square Inc plans ‘imminent’ IPO filing -Reuters

(Reuters) – Payments startup Square Inc plans to file for an “imminent” initial public offering, according to a source familiar with the situation, potentially putting it an a position to be a public company by the end-of-year holiday season. Square, which has pioneered the use of instant payments over smartphones, is one of the most richly valued companies in Silicon Valley, worth an estimated $6 billion based on its most recent round of funding. Earlier Friday, Fortune reported that Square would file for an IPO in the next two weeks. A spokesman for Square declined comment. Market turmoil of the type seen in August, when the Dow Jones Industrial Average closed down 588 points in a single day, could derail IPO plans. Square has become one of the most scrutinized start-ups in Silicon Valley. Many venture capitalists have privately questioned whether it is really worth the $6 billion valuation. The doubters have cited heavy competition and tight margins in the payments business. An IPO will provide a quick answer to that question, as well as guidance for many of the other private start-up companies dubbed “unicorns,” meaning their valuation is $1 billion or more. CB Insights, a venture-capital tracker, says more than 130 such companies now exist. Overall, the climate for venture-backed IPOs has weakened this year, with just 44 venture-backed companies listing on public markets in the first half of the year, according to the National Venture Capital Association. That compares with 66 in the first half of 2014. Earlier this year, Square had filed for a “confidential” IPO, which lets companies with under $1 billion in annual revenue file registration documents and go through a Securities and Exchange Commission review without public scrutiny. After the review, if the company wishes to continue with an IPO, it makes a public filing. Goldman Sachs will serve as lead underwriter, with Morgan Stanley and JPMorgan Chase also participating, Fortune reported. Square’s IPO comes at a critical time for Chief Executive Officer Jack Dorsey, who is also interim CEO of Twitter Inc . Dorsey has not dismissed becoming permanent CEO of Twitter while staying at Square, but Twitter’s board has said that its next CEO needs to be solely focused on that company. (Additional reporting by Yasmeen Abutaleb in San Francisco; Editing by Meredith Mazzilli, Bernard Orr and David Gregorio)

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Payments startup Square Inc plans ‘imminent’ IPO filing -Reuters

Ardian acquires additional stake in CLH Group

Ardian has increased its stake to 25 percent in CLH Group. No financial terms were disclosed. The seller was Repsol. Based in Spain, CLH Group is an oil products and storage company. PRESS RELEASE Madrid, September 25, 2015 – Ardian, the independent investment company, announces today the acquisition of an additional 10% equity stake in the CLH Group (Compañía Logística de Hidrocarburos), the Spanish oil products and storage company, from Repsol, the integrated global energy company. With this investment Ardian reinforces its position as the largest shareholder in the company, increasing its shareholding to 25%. Ardian first became a shareholder in CLH in 2011 with the acquisition of a 10% stake, before acquiring an additional 5% stake in 2013. This new investment in CLH is further evidence of Ardian’s long-term commitment to essential infrastructure projects in Europe. CLH is the owner and operator of the largest Spanish oil products and storage network, with more than 4,000km of pipeline and seven million m3 of storage capacity in Spain, including strategic national reserves. CLH recently acquired the GPSS (Government Pipeline and Storage System), the largest oil distribution network in the United Kingdom, with a pipeline network of 2,000 kilometers, which represents 50% of the UK’s total network. GPSS also has 16 storage facilities with more than one million m3 combined storage capacity. Mathias Burghardt, Member of the Executive Committee and Head of Infrastructure at Ardian, said: “This investment will provide certainty and stability to CLH, a critical infrastructure asset in Spain. Ardian Infrastructure will continue to support the company’s efforts in providing its clients with the most efficient and reliable logistics services in Europe while leading the industry in further innovation.” Juan Angoitia, Managing Director of Infrastructure at Ardian, added: “Following the opening of its Madrid office in September, Ardian continues to strengthen its presence in Spain, where the company sees great opportunities. Having concluded our three transactions in CLH with customers and industrial shareholders highlights our ability to secure deal flow thanks to our local presence and network and to share long term vision for strategic assets.” Over the last decade Ardian Infrastructure has built a significant presence in core energy and transport infrastructure across Europe, forging strong partnerships with leading infrastructure players such as Abertis, the international market leader in the management of toll roads, and AENA, the public airport operator in Spain and abroad. This has led to joint investments in major infrastructure assets, including SANEF, the toll road network in France, Trados 45, a toll road in Madrid, the Vallvidrera and Cadí Tunnels near Barcelona, and London Luton Airport. ABOUT ARDIAN Ardian, founded in 1996 and led by Dominique Senequier, is an independent investment company with assets of US$50bn managed or advised in Europe, North America and Asia. The company, which is majority-owned by its employees, keeps entrepreneurship at its heart and delivers investment performance to its global investors while fuelling growth in economies across the world. Ardian’s investment process embodies three values: excellence, loyalty and entrepreneurship. Ardian maintains a truly global network, with more than 380 employees working through eleven offices in Paris, London, Frankfurt, Milan, Madrid, Zurich, New York, Beijing, Singapore, Jersey, Luxembourg. The company offers its 355 investors a diversified choice of funds covering the full range of asset classes through Ardian Funds of Funds (comprising primary, early secondary and secondary activities), Ardian Private Debt, Ardian Direct funds (comprising Ardian Mid Cap Buyout, Ardian Expansion, Ardian Growth and Ardian Co-Investment), Ardian Infrastructure, Ardian Real Estate and customized mandate solutions with Ardian Mandates.

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Ardian acquires additional stake in CLH Group

Riverside exits Orliman

Magnum Capital has acquired Riverside Company‘s ownership stake in Orliman. No financial terms were disclosed. Montalban and KPMG served as advisors to Riverside on the transaction. Based in Valencia, Spain, Orliman is a maker of orthopedic devices. PRESS RELEASE (PRWEB) SEPTEMBER 24, 2015 The Riverside Company has sold its ownership stake in Orliman to Iberian Private Equity firm Magnum Capital. Orliman is a Spanish manufacturer and distributor of non-invasive orthopedic devices. The company’s products are used in the prevention of injury, treatment of chronic conditions and for recovery after surgery or injury. Based in Valencia Spain, Orliman manufactures a broad portfolio of devices for the upper limb, torso and lower limb including both standard as well as made-to-measure products. After investing in Orliman in 2010, Riverside expanded the company considerably through both organic growth and integration of add-on acquisition. These efforts helped to extend Orliman’s leadership position in its market and accelerated the company’s transformation into the leading player within Southern Europe. During Riverside’s hold period, Orliman’s sales by more than 50% and EBITDA nearly doubled. Among other improvements, Riverside incorporated new senior leadership, further invested in new product development, and reinforced the export department by increasing the company’s presence in selected markets throughout the world. In 2014, Riverside completed the acquisition of French orthopedic company Soft Medical Europe. Today, Orliman sells in more than 40 countries and 70% of sales are generated outside of Spain. “We’re very proud of the work we did at Orliman,” said Riverside Principal Rafael Álvarez-Novoa. “It went from a family-owned business to a growing international enterprise during our hold. Orliman has proven to be a very solid and stable business, with strong leadership position in its core markets and very promising exports business that grows above 15% every year.” Working with Álvarez-Novoa on the transaction for Riverside were Vice President Damien Gaudin and Operating Executive Juan Rufilanchas. Montalban and KPMG advised Riverside on the transaction, and Garrigues acted as legal counsel for the firm. The Riverside Company (http://www.riversidecompany.com or http://www.riversideeurope.com) The Riverside Company is a global private equity firm focused on investing in and acquiring growing businesses valued at up to $300 million. Since its founding in 1988, Riverside has invested in more than 400 transactions. The firm’s international portfolio includes more than 80 companies.

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Riverside exits Orliman