Investment in Primavera

22 June 2021

Oakley Capital Investments Limited

Oakley Capital Investments Limited¹ ("OCI") is pleased to announce that Oakley Capital Private Equity III² ("Fund III") has agreed to invest in PRIMAVERA Business Software Solutions, ("PRIMAVERA" or the "Company"), the Portuguese leader in business management software.

OCI's indirect contribution via Fund III will be £11 million.

Note that the above figure only relates to OCI's share of Fund III's overall investment in PRIMAVERA.

OCI's liquid resources available for future deployment (including this transaction) are estimated to be £162 million.          

Further details on the transaction can be found in the announcement below from Oakley Capital³.

Investment in PRIMAVERA establishes a leading Iberian business software group

Oakley Capital is pleased to announce that Oakley Capital Private Equity III ("Fund III") has agreed to acquire PRIMAVERA Business Software Solutions ("PRIMAVERA" or the "Company"), the Portuguese leader in business management software. The Company will be combined with existing Oakley Capital portfolio company Ekon, a Spanish provider of Enterprise Resource Planning ("ERP") software, to create a new group under the name Grupo Primavera, which will be the largest independent provider of business software in Iberia. The transaction is subject to regulatory approval.

Founded in 1993, PRIMAVERA provides ERP and cloud business software solutions to over 32,000 Small and Medium-sized Enterprises ("SMEs") across Portugal and Portuguese-speaking Africa. PRIMAVERA is widely recognised as a market leader, with a strong brand and reputation, and is supported by a broad distribution network of over 500 partners. The Company was acquired from its founders, José Dionísio and Jorge Batista, who will invest alongside Fund III in the merged entity and continue to co-lead the PRIMAVERA business.

Grupo Primavera will comprise PRIMAVERA, Ekon, which was acquired in 2019 as Fund III's initial investment in the space, and five additional bolt-on acquisitions made over the last twelve months (Tabulae, Contasimple, Billage, Diez Software and Professional Software). The newly established group will be the largest independent software platform serving SMEs in Iberia, with over 55,000 customers, c.€60 million of revenues and double-digit annual growth, driven by the rapid adoption of Software as a Service ("SaaS") solutions. Grupo Primavera will be led by Santiago Solanas, an industry veteran with over 30 years' experience in global roles in the software industry, including leadership positions at Cisco in France and Southern Europe, Sage Iberia, as well as in Microsoft and Oracle.

The Iberian business software market continues to benefit from long-term structural growth, as SMEs digitise and adopt cloud technology. Portugal and Spain lag international benchmarks in cloud adoption, at c.25% and c.30%, respectively, compared to over 60% in Northern Europe.

Grupo Primavera will accelerate its deployment of cloud solutions organically through investment in product development and go-to-market initiatives, as well as through further acquisitions.

Peter Dubens, Managing Partner of Oakley Capital, commented:

"This is another example of Oakley's ability to invest in founder-owned technology businesses and execute buy-and-build strategies. With the adoption of cloud technology in Iberia being behind the rest of Europe, we see significant value and further potential in growing the largest independent business software platform to service SMEs within the region."

José Dionísio and Jorge Batista, CEOs and Co-Founders of PRIMAVERA, commented:

"We are very excited about the new path that we are taking by creating an independent Iberian business software champion. This is a project with great potential, bringing together companies with a wide range of experience and leadership within the sector. We have been approached by many potential partners over the years, but it is with Oakley Capital and Santiago Solanas that we decided to take this step due to the exciting project they presented to us."

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For further information please contact:

Oakley Capital Limited

+44 20 7766 6900

Steven Tredget, Investor Relations

Greenbrook Communications Limited

+44 20 7952 2000

Alex Jones / Michael Russell

Liberum Capital Limited (Financial Adviser & Broker)

+44 20 3100 2000

Chris Clarke / Darren Vickers / Owen Matthews

Notes:

LEI Number: 213800KW6MZUK12CQ815

¹ About Oakley Capital Investments Limited ("OCI")

OCI is a Specialist Fund Segment ("SFS") traded investment vehicle that aims to provide shareholders with consistent long-term capital growth in excess of the FTSE All-Share Index by providing liquid access to private equity returns through investment in the Oakley Funds².

A video introduction to OCI is available at https://oakleycapitalinvestments.com/videos/

The contents of the OCI website are not incorporated into, and do not form part of, this announcement.

² The Oakley Funds

Oakley Capital Private Equity L.P. and its successor funds, Oakley Capital Private Equity II, Oakley Capital Private Equity III, Oakley Capital IV and Oakley Capital Origin Fund are unlisted lower-mid to mid-market private equity funds that aim to provide 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.

³ Oakley Capital, the Investment Adviser

Founded in 2002, Oakley Capital Limited has demonstrated the repeated ability to source attractive growth assets at attractive prices. To do this it relies on its sector and regional expertise, its ability to tackle transaction complexity and its deal generating entrepreneur network.

Important information

Specialist Fund Segment securities are not admitted to the Official List of the Financial Conduct Authority. Therefore, the Company has not been required to satisfy the eligibility criteria for admission to listing on the Official List and is not required to comply with the Financial Conduct Authority's Listing Rules.

The Specialist Fund Segment is intended for institutional, professional, professionally advised and knowledgeable investors who understand, or who have been advised of, the potential risk from investing in companies admitted to the Specialist Fund Segment.

This announcement may include "forward-looking statements". These forward-looking statements are statements regarding the Company's objectives, intentions, beliefs or current expectations with respect to, amongst other things, the Company's financial position, business strategy, results of operations, liquidity, prospects and growth. Forward-looking statements are subject to risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future.  Accordingly the Company's actual future financial results, operational performance and achievements may differ materially from those expressed in, or implied by, the statements. Given these uncertainties, prospective investors are cautioned not to place any undue reliance on such forward-looking statements, which speak only as at the date of this announcement. The Company expressly disclaims any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect actual results or any change in the Company's expectations with regard to them or any change in events, conditions or circumstances on which any such statements are based unless required to do so by the Financial Services and Markets Act 2000, the Listing Rules or Prospectus Regulation Rules of the Financial Conduct Authority or other applicable laws, regulations or rules.