Cideon Group Investment
| Company | Cideon AG |
| www | www.cideon.de |
| Initial Investment Date | May 2007 |
| Exit | October 2013 |
| Entry Valuation | 12.6m |
| Exit Valuation | 35m |
| Total Investment | 5.6m |
| Current Sale Value | 15m |
| 2017 Revenue | 67m |
| 2017 EBITDA | 6.2m |
| Initial Ownership | 39% |
| Investment Type | Replacement Capital |
| Seafort Role at Entry | Sole Institutional Investor |
| Co-Investors | Management |
| Multiple at Cost | 2.7x |
| Gross IRR | ~17.8% |
Business Description and Investment Thesis
Cideon AG is specialized in the implementation of CAD, PDM and PLM systems. The company also offers enhanced development and constructions services. It has developed proprietary software products for the integration of AutoCAD into SAP. The company has become a market leader in Germany.
Key Investment Considerations
The partnership with Autodesk helped Cideon to access their customer base and sell its products at higher margins. The Software subsidiary of Cideon is specialized on SAP–PLM integrations, Cideon proved in the past already the strong growth potential in this regard, as SAP is one of the leading suppliers of PLM concepts with the highest growth rates in this segment to date. Cideon’s Software and SAP are mutually dependent.
- Leading market position
- Main system partner of Autodesk, a world market leader in 2D and 3D software solutions
- Preferred partner of SAP
- Developing and growing market driven by SAP
Sourcing
In 2007, Seafort (formerly Beaufort) was approached by the entrepreneurs of Cideon AG, which were aware of Seafort (formerly Beaufort)’s reputation as a value-added investor.
The entrepreneurs were seeking to replace its former distressed venture partner with an investor, who was capable to bring the company to the next level. Seafort (formerly Beaufort) acquired the shares from the former venture partner in a transaction via the managing partners of Cideon at an entry EBIT multiple of 6.2, in a non-competitive process.
Post-Investment Value Development and role of Seafort
Cideon AG has performed exceptionally since then, with revenues and EBIT increasing +170% and +150% in 2013 versus 2007.
Role of Seafort (formerly Beaufort) Capital
Continued supporting the management and networking to realize the internationalization and growth strategy in both company segments.
Exit and Valuation
In October 2013 Cideon was sold to the strategic buyer Friedhelm Loh Group (E+M Engineering GmbH & Co. KG) for 2.7x MOI.