A major international investor is in advanced talks over a potential deal involving Entersoftone, in a transaction that could value the Greek business-software company at close to €1 billion ($1.2 billion), according to people familiar with the discussions.
Negotiations between Entersoftone’s shareholders and the prospective investor, a London-based investment group with a significant presence in technology and software, have progressed substantially, the people said. A transaction could be approaching its final stages, though no agreement has been announced and the valuation and other terms could still change.
A deal at that level would rank among the larger recent transactions in Greece’s technology sector and underscore growing investor interest in business-software companies with recurring revenue and opportunities for consolidation.
ΔΙΑΒΑΣΤΕ ΕΠΙΣΗΣ
Comparable enterprise-software businesses internationally have traded at valuations of roughly 19 to 22 times earnings before interest, taxes, depreciation and amortization, or Ebitda, providing a benchmark for the valuation being discussed for Entersoftone.
One important element under consideration is the company’s future ownership structure. Olympia Group, the investment group controlled by Greek businessman Panos Germanos, currently owns about 41% of Entersoftone and isn’t expected to sell its entire holding as part of the proposed transaction, according to people familiar with the matter. Instead, Olympia is expected to retain a stake and remain involved in the company’s next phase of growth.
The prospective international investor has sought to keep Olympia as a shareholder, the people said. The London-based group views the presence of a strong domestic partner as important because of Olympia’s knowledge of the Greek market, Entersoftone’s customer base and the particular characteristics of the country’s business environment.
Such an arrangement would allow the incoming investor to combine international capital and software-sector expertise with an established local partner.
