The ISP takes 20% stake Avanquest Software
The Strategic Investment Fund (ISF), the SWF lights, preparing to take forward a 20% stake of Avanquest Software, a French manufacturer of consumer software is also present in the professional sector with products shipped in the mobile phones. Avantquest Software is ranked ninth among ISVs lights.
In a statement released Wednesday, Avanquest indicates that the ISP will inject 6 million euros through a capital increase that will be conducted in early 2010. The capital increase Avanquest should be a total of 8 to 9 million euros, with retention of preferential subscription rights.Taking as reference the Group's market capitalization at the close Tuesday, the ISP would hold at the end of the transaction, approximately 12% of capital Avanquest.
Meanwhile, the Strategic Fund will acquire 3 million euros in convertible bonds issued by the software publisher. The ISP also expressed readiness to participate in a "future fund raising, once a major project of external growth would, for a total investment of the two transactions exceeding 20 million euros. This second operation would be, if, before March 31, 2011, the participation of ISPs are capped at 20%.
Avanquest has already completed a capital increase in March
The ISP had set the tone earlier this year by partnering with the French association of software publishers (Afdel).The fund, whose capital is owned 51% by the Deposit and 49% by the French state has already chosen other targets in software publishing. He announced his entry with Cegedim, a specialist in customer relations for the pharmaceutical industry in which it would inject 117 million euros. But while health Cegedim is flourishing, that Avanquest is more delicate.
The company co-founded in 1984 by Bruno Van Ryb has changed in size in two major acquisitions in 2007. Avanquest has indeed swallowed Nova Development in the United States and Emme in Europe, which enabled him to climb the third step of the podium European consumer software.But last year, the company saw its sales fall by 10.6% to 104.1 million euros and has posted losses for the second time.
Last March, Avanquest, which has cut its workforce, conducted a capital increase of 7 million euros during which Oddo Asset Management has gone to join other investors (Turenne Capital, OTC Asset Management, After Flora, IDI Edmond de Rothschild Investment Partners and AGF Private Equity). The ISP should become the largest shareholder of the company while employees and managers 17.3% of total capital Avanquest.