General Atlantic has agreed a deal with German media giant ProSiebenSat.1 to take a minority stake in its commerce division.
The firm has acquired a 25.1 per cent share of the unit, now named NuCom Group. The deal values NuCom Group at €1.8bn.
The division holds stakes in ten companies including price comparison site Verivox, dating business Parship Elite Group and experiences company Jochen Schweizer Mydays Group. It generates turnover of more than €650m.
ProSiebenSat.1 bought stakes in Verivox and Parship from Oakley Capital in 2015 and 2016 respectively, deals which produced strong returns for the firm. As part of this transaction, ProSiebenSat.1 will increase its positions in the companies, owning 100 per cent of Verivox and 94 per cent of Parship.
The deals value Verivox at €530m and Pariship at €440m. Oakley will make a 2.5x money multiple and 43 per cent IRR on the Verivox stake sale and a 4.7x multiple and 119 per cent IRR on the Parship sale.
With General Atlantic’s backing, NuCom Group intends to become a leading European omnichannel platform for consumer services and lifestyle brands, benefitting from ProSiebenSat.1’s TV reach and data and technology capabilities.
“The impressive revenue and earnings development of NuCom Group over the past years speak to the quality of the business model. ProSiebenSat.1 has done successful pioneer work here and has built a portfolio with strong growth potential,” said Jörn Nikolay, managing director and head of General Atlantic Germany.
“We will bring our long-time, global expertise in the strategic development of growth companies into this partnership and will contribute to the profitable growth of NuCom Group.”
General Atlantic and ProSiebenSat.1 have worked together before, teaming up in 2016 to acquire KäuferPortal.
JPMorgan advised ProSiebenSat.1 while Goldman Sachs advised General Atlantic.