In June 2015, Oakley Capital Private Equity L.P. (“Fund I”) sold its investment in Verivox, a German energy price comparison site to ProSiebenSat.1 for an initial cash consideration of €200 million plus a contingent €50 million. The transaction is expected to generate a 15x gross money multiple for Fund I, with an IRR of 73%, based on a company value of €200 million, increasing to 19x and 76% if the full earnout is paid.
AIM-listed Oakley Capital Investments Ltd’s (OCIL) indirect economic interest in Verivox via Fund I is valued at €38.7mn. OCIL will continue to hold a minority interest in Verivox, through its commitment to Oakley Capital Private Equity II (“Fund II”), a successor fund to Fund I.
In the six years since Oakley’s acquisition of the business from Independent News and Media, Verivox has transformed, in terms of its position as Germany’s largest independent consumer price-comparison portal for energy, as well as entering new markets, with new price-comparison services for car and other insurance, loans and mortgages, diversifying its revenue stream. In addition, Verivox introduced offline advertising, significantly increasing brand awareness and professionalised its management structure, reporting and corporate governance.
Mark Joseph, Partner of Oakley Private Equity, said, "This transaction is another example of Oakley’s expertise in the online sector and its ability to identify founding entrepreneurs and partner with them to professionalise and grow their companies. It also demonstrates our ability to generate superior returns to our investors through true operational improvements.”