Eurazeo SE — M&A Activity 2022

Nov 21, 2022

EURAZEO SIGNS AN AGREEMENT TO INVEST IN NEOXAM, A PROVIDER OF FRONT-OFFICE, MIDDLE-OFFICE AND BACK-OFFICE SOFTWARE FOR FINANCIAL INSTITUTIONS

Paris, 21 November 2022

Eurazeo, via its Small-Mid Buyout team¹ is today announcing the signature of an agreement with a view to investing in NeoXam, alongside its founder Serge Delpla and its management team led by Florent Fabre.

Under the agreement, Eurazeo would invest more than €100 million, thus becoming the group's majority shareholder. Historical partners (led by Cathay Capital and BPI), shareholders since 2018, would sell their share in this occasion.

NeoXam was created in 2014 following a carve-out from Sungard and a series of acquisitions adding complementary solutions. It now has 550 employees, of which half in R&D, across 15 offices worldwide. The company provides "data-centric" solutions used by more than 120 clients – large asset managers, financial institutions, and global banks – to structure their IT systems. NeoXam solutions cover everything from Front Office (Portfolio Management System) to Back and Middle Office, accounting (NAV) and regulatory and client reporting teams. Clients on all continents – in Europe, the US, Canada and Asia, particularly Singapore and mainland China – have chosen NeoXam for its functional and technological expertise.

Over the last four years, NeoXam has deployed its global growth strategy while also developing its business model. It has transitioned away from upfront licences to SaaS subscriptions, which now account for more than half of its revenue (€75 million) and make the company highly resilient.

Through its investment plan, Eurazeo is willing to support NeoXam in continuing ramping up growth, particularly in the Data Management and Reporting segments, and expanding internationally (particularly in Asia, the UK and US). Eurazeo also plans to provide NeoXam with its internal resources, helping NeoXam to pursue its buy-and-build strategy to complement its range of services and client base, and to accelerate its international expansion.

To achieve this, Eurazeo would give NeoXam access to its global network and expertise in developing businesses throughout their growth phase, in order to strengthen the global leading position of this asset management solution provider.

¹ Part of the Eurazeo Mid Cap asset management company.

Serge Delpla, founder of NeoXam, said:

"With Eurazeo's support, NeoXam could add a new dimension to its international growth strategy. Our products, which are used by most of the global top 20 asset managers in locations such as NY, London and Singapore, have proven their value as extraordinarily useful tools, particularly in the rapidly developing fields of Data Management and Reporting. Eurazeo would be an ideal partner, combining extensive investment capabilities, an exceptional international network and a rare understanding of the entrepreneurs it supports. We hope to enter into a partnership in the very near future, to enable NeoXam to reach its full potential."

Florent Fabre, Managing Director of NeoXam, added:

"We are confident that Eurazeo is the best partner to accompany NeoXam in the next chapter of our story. On top of all the resources that Eurazeo can offer, its teams share with us the same human and entrepreneurial essential values, which will help us to work together to complete the next phase of our growth strategy. We will more than ever focus on the continuous investment in our solutions, client satisfaction and our workforce fulfilment."

Pierre Meignen, Managing Director of Eurazeo's Small-Mid Buyout team, said:

"The opportunity to work alongside NeoXam fits perfectly with our investment strategy. The company has an extremely resilient business, its core business areas displaying growth over 20% p.a. Its strong global presence will help boost growth and its teams are immensely talented."

ABOUT NEOXAM

• About NeoXam NeoXam is a leading financial software company, delivering solutions and services for 120+ customers in 25 countries worldwide. NeoXam is committed to its clients' success: we deliver reliable and scalable solutions, processing more than \$14 trillion worth of assets per day and serving over 10,000 users. Through its combined talents and transparent approach, NeoXam helps buy- and sell-side players address the continuous changes in the financial market industry, to grow and better serve their clients. NeoXam relies on 550+ staff and is headquartered in Paris and has 14 offices across the globe.
• For more information, please visit: www.neoxam.com

ABOUT EURAZEO

• Eurazeo is a leading global investment group, with a diversified portfolio of €32.4 billion in assets under management, including €23.2 billion from third parties, invested in 530 companies. With its considerable private equity, private debt, real estate and infrastructure expertise, Eurazeo accompanies businesses of all sizes, supporting their development through the commitment of its nearly 400 professionals and offering in-depth sector expertise, a gateway to global markets, and a responsible and stable foothold for transformational growth. Its solid institutional and family shareholder base, robust financial structure free of structural debt, and flexible investment horizon enable Eurazeo to support its companies over the long term.
• Eurazeo has offices in Paris, New York, London, Frankfurt, Berlin, Milan, Madrid, Luxembourg, Shanghai, Seoul, Singapore and Sao Paulo.
• Eurazeo is listed on Euronext Paris.
• ISIN: FR0000121121 Bloomberg: RF FP Reuters: EURA.PA

EURAZEO CONTACT

Virginie Christnacht HEAD OF COMMUNICATIONS vchristnacht@eurazeo.com +33 (0)1 44 15 76 44

Pierre Bernardin

HEAD OF INVESTOR RELATIONS pbernardin@eurazeo.com +33 (0)1 44 15 16 76

PRESS CONTACT

David Sturken MAITLAND/AMO dsturken@maitland.co.uk +44 (0) 7990 595 913