Teamsystem funds acquisition of group Sole 24 Ore's software division with bond tap

TeamSystem will buy  24OreSoftware, the software division of the Italian leading financial publishing group  Sole 24Ore (download here the English press release). Led by ceo Federico Leproux and 100 pct controlled by private equity fund HgCapital, Teamsystem produces and distributes management software for businesses and professionals.
The scope under the disposal includes all of the software assets of the 24 ORE Group. Revenue generated by these assets in 2013 amounted to 61.2 million euros. The enterprise value agreed with TeamSystem is 117.5 millions, while the equity value, net of the net financial position, is estimated at around 104 millions. In addition, Il Sole 24 ORE will receive the price for the disposal of a receivable equal to approximately 14 millions.
The deal will be funded by Teamsystem  with a 130 million euros tap on its 300 million euros senior secured high yield notes due in May 2020 paying a 7.375% coupon. The bond is rated B2 by Moody’s and B by Standard&Poor’s and has a call option in May 2016. It quoted around 107 last evening on the ExtraMot Pro market managed by Borsa Italiana spa and paid a 5.95% yield to maturity.   JPMorgan has been chosen as lead manager of the placement while co-lead are Hsbc, Unicredit e Ubs.
Teamsystem had 177.6 million euros in revenues in 2013, up from 154 millions in 2012 with a 54.7 millions of ebitda. 24OreSoftware acquisition by Teamsystem follows the one of ACG from IBM Italia, focused on management software for medium and big businesses, makin 20 million euros in revenues in 2013. Infact the bond tap will also cover a rifinance of a revolving credit facility that Teamsystem used last December 2013 to support ACG’s deal.