Oakley Capital Private Equity has agreed to sell its stake in Damovo Group to Eli Global.

Oakley expects to make a 5.4x return on the deal, which values Damovo at up to €140m. The sale brings the net return to LPs on Oakley Capital Private Equity, the firm’s second fund, to 1.9x.

Damovo’s valuation comprises an upfront consideration of €115m million and further consideration of up to €25m, dependent on Damovo’s financial performance in the year to January 2019.

Oakley first invested in Damovo in 2015.

Glasgow-based Damovo provides enterprise ICT services, including email exchange and video conferencing, across Europe. It has dedicated businesses in Germany, Ireland, Switzerland, Poland and Belgium, as well as a global services unit.

Oakley decided to back Damovo after Matthew Riley, the founder of Daisy, another Oakley portfolio company in the same sector, saw an opportunity to acquire the business.

According to Oakley, Damovo has been transformed under its ownership, more than doubling EBITDA since its initial investment.

The company has returned to organic growth by delivering large, multi-year managed communications services contracts, and through three strategic acquisitions.