6 July 2018
Oakley Capital Investments Limited
Oakley agrees sale of Damovo to Eli Global
· Enterprise Value: The transaction values Damovo at up to €140 million
· Proceeds: OCI to receive up to £15.4 million - a 12% premium to the December 2017 carrying value
· Uplift: The sale results in an uplift of up to 1.0 pence per share on the overall 31 December 2017 NAV
· Returns: Fund II gross returns are expected to be 5.4x MM, approximately 57% IRR
Oakley Capital Investments Limited (AIM:OCI, the "Company") is pleased to announce that Oakley Capital Private Equity II ("Fund II") has reached an agreement to sell its stake in Damovo Group ("Damovo"), a leading independent European unified communications and collaboration ("UC&C") company, to Eli Global. The transaction, which is subject to regulatory approval, values Damovo at up to €140 million, comprising an upfront consideration of €115 million and further consideration of up to €25 million, dependent on Damovo's financial performance in the year to 31 January 2019.
The Company will realise cash proceeds of approximately £12.5 million on completion of the sale, with future proceeds of up to £2.9 million. The full realisation would represent an increase of £1.7 million to the December 2017 NAV, lifting the NAV per share by up to 1 pence.
Oakley invested in Damovo in 2015, in a proprietary deal that was sourced via Oakley's network of business founders and management teams, as is typical for Oakley investments. Matthew Riley, the successful UK entrepreneur and founder of Daisy, another Oakley portfolio company, identified the opportunity to acquire Damovo in a complex carve out. The underlying business units, which were in need of new investment, were consolidated into one combined and cohesive company.
Under Oakley's ownership, Damovo has been transformed into a recognised European specialist in delivering and managing critical UC&C solutions for enterprise and public-sector organisations. The business has returned to organic growth by winning and delivering large, multi-year managed services contracts, and this has been supported by the integration of three strategic acquisitions. This growth, as well as a more efficient group structure put in place by the experienced management team, has lead to the business more than doubling EBITDA since Oakley's initial investment.
Christopher Wetherhill, Chairman of OCI, commented:
"This is another impressive return for an Oakley investment in the Technology, Media and Telecoms sector, and is a good example of the value that Oakley can create through its network by partnering with experienced management teams and business founders, in this case Matthew Riley, on multiple occasions."
David Till, Senior Partner at Oakley Capital Private Equity, commented:
"We would like to thank Matthew Riley, Glen Williams, Stuart Hall and the team for their tireless work in transforming the business over the past three years. Damovo is now a very well-respected and competitive player in the growing European market. It has the highest levels of vendor accreditation and has won a number of awards for its excellent customer service. We are proud of the part we have played in its evolution, with the business ideally positioned for its next phase with Eli Global."
This announcement contains inside information.
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For further information please contact:
Oakley Capital Investments Limited
+44 20 7766 6900
Steven Tredget, Investor Relations
Greenbrook Communications Ltd
+44 20 7952 2000
Alex Jones / Matthew Goodman / Gina Bell
Liberum Capital Limited (Nominated Adviser & Broker)
+44 20 3100 2000
Gillian Martin / Jill Li
1 About Oakley Capital Investments Limited ("OCI")
Oakley Capital Investments Limited is a Bermudian company listed on AIM. OCI seeks to provide investors with long term capital appreciation through its investment in Oakley Capital Private Equity L.P., Oakley Capital Private Equity II, Oakley Capital Private Equity III and through co-investment opportunities.
LEI Number: 213800KW6MZUK12CQ815
2 About Oakley Capital Private Equity L.P. ("Fund I"), Oakley Capital Private Equity II ("Fund II") and Oakley Capital Private Equity III ("Fund III")
Oakley Capital Private Equity L.P. and its successor funds, Oakley Capital Private Equity II and Oakley Capital Private Equity III, are unlisted mid-market private equity funds with the aim of providing investors with significant long term capital appreciation. The investment strategy of the funds is to focus on buy-out opportunities in industries with the potential for growth, consolidation and performance improvement.
