13 May 2019
Oakley Capital Investments Limited
Acquisition of leading maritime e-learning businesses Videotel and Seagull
Oakley Capital Investments Limited1 (AIM: OCI, the "Company") is pleased to announce that Oakley Capital IV2 ("Fund IV") has partnered with the management teams of SG MidCo AS ("Seagull"), and Videotel Marine Asia Limited and Super Dragon Limited (collectively "Videotel"), to acquire majority stakes in the businesses from their current shareholders Herkules Private Equity Fund IV and KVH Industries (NASDAQ: KVHI), respectively.
Over the past 40 years, Videotel and Seagull have established themselves as the best-in-class providers of e-learning to the maritime sector globally. Every year they each provide over 10,000 ships and installations with comprehensive and up-to-date compliance, risk and safety training that ensures adherence to International Maritime Organisation requirements. In 2018, the two companies collectively generated $50 million of revenue.
The digital transformation taking place in the shipping industry, as well as the increasingly complex regulatory framework, offers a significant opportunity for e-Learning providers. The management teams of Seagull and Videotel believe that this opportunity can be grasped most effectively by working together as a combined group. With both parties able to collaborate and share knowledge and resources, the two businesses will be able to provide their respective customers with a greater level of product and services.
Apart from an enhanced investment plan, there will be no immediate operational changes in either company except that Oscar Johansen, Chairman and Founder of Seagull, will take up the role of President of the combined group. Roger Ringstad and Raal Harris will continue to lead Seagull and Videotel, respectively.
This transaction continues Oakley's successful track record of investing in the maritime and education sectors. Oakley previously invested in Headland Media, a provider of media and entertainment services to the offshore and shipping sectors, while its current investments include North Sails, the largest sail maker in the world; Inspired, one of the leading global premium schools groups; Career Partner Group, the fast-growing private university in Germany; Schülerhilfe, Europe's largest after-school tutoring business; and AMOS, one of the leading international business schools in France.
The acquisition of Videotel signed and completed simultaneously, whilst a gap of eight weeks was agreed between signing and completion of the acquisition of Seagull.
The Company's indirect contribution through its interest in Fund IV is expected to be approximately £25 million.
Houlihan Lokey acted as Oakley's financial advisor in connection with the transaction.
Peter Dubens, Managing Partner of Oakley Capital commented:
"We are delighted to be partnering with the management teams of Seagull and Videotel, two companies we have admired for many years. Both teams are exactly the type of highly-ambitious professionals we continually seek to back. We look forward to supporting them in their plans to invest in new content and technology solutions based on the wealth of internal expertise which can now be shared across the group."
Roger Ringstad, Managing Director of Seagull commented:
"As the shipping industry continues to make advancements in digitalisation, we see significant opportunities to further enhance the breadth and depth of products and services we offer our clients. In Videotel and Oakley we believe that we have the perfect partners to support us on that journey."
Raal Harris, Managing Director of Videotel commented:
"This is a historic moment in the history of maritime e-learning. In combining our expertise and sharing the additional resources that an ambitious and forward-thinking company like Oakley can provide, we will be able to meet the needs of our customers in ways never previously possible. We are confident that Oakley has assembled a team of unrivalled quality to take our companies forward and are excited about what the future holds."
-ENDS-
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 / Owen Matthews
Notes:
This announcement contains inside information for the purposes of the Market Abuse Regulation (EU) No. 596/2014.
1 About Oakley Capital Investments ("OCI")
OCI is an AIM-listed investment vehicle, which provides access to the Oakley funds. It is a liquid vehicle that provides capital growth and dividends to investors.
LEI Number: 213800KW6MZUK12CQ815
2 The Oakley Funds
Oakley Capital Private Equity L.P. and its successor funds, Oakley Capital Private Equity II, Oakley Capital Private Equity III and Oakley Capital IV, are unlisted, Western Europe-focused 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.
The Investment Adviser
Oakley Capital has demonstrated the repeated ability to acquire attractive growth assets at attractive prices. To do this they rely on their sector and regional expertise, their ability to tackle transaction complexity and their deal generating entrepreneur network.
