The company built on former assets of Jet Multimedia wants to raise 100 to 150 million euros to finance new acquisitions.
It looks like a rebirth. With the plan to go public this year with Digital Virgo, Eric Peyre and Manuel Cruz draw the attention back to Jet Multimedia. Former unicorn to the Paris Stock Exchange (Second Marché), the company was partly sold by the two leaders to 9 Telecom for 884 million euros in 2000, before being acquired by SFR and getting out of the stock market in 2011.
The two partners have never given up on their company. In 2008, in the midst of the financial crisis, they bought SFR’s international assets and some French Jet Multimedia activities for 20 million euros, half of which was financed by the telecom operator, backed by 21 Centrale Partners. Digital Virgo was born. “We relied on the former international scope of Jet Multimedia to re-established ourselves in France and expand our positions abroad, especially in Latin America and Africa, through organic growth and acquisitions,” says Manuel Cruz, Digital Virgo’s CEO, to the AGEFI.
New activities to develop
In 2017, the company generated 215 million euros in sales revenue, 63% of which abroad, for a gross operating surplus (EBITDA) of 24.5 million. This year, 280 million euros in revenues are expected with 28 million of Ebitda. Digital Virgo recently acquired parts of Netsize activities from Gemalto. This transaction “allows us to go one step further with our businesses with Orange and Yoigo in Spain, Meo in Portugal and EI Telecom (Crédit Mutuel MVNO). This acquisition also brings us transport payment contracts with several Italian cities” explains Guillaume Briche, Digital Virgo’s Operations Director.
“The group has built strong positions in performance-based mobile advertising and services for telecom operators (payment solutions, SMS marketing campaign …), but these businesses also offer significant development opportunities. This is why it makes sense for the stock market to support this growth”, says Manuel Cruz. Digital Virgo plans to raise 100 to 150 million euros through the issue of new shares to finance future acquisitions.
The IPO, planned in October 2018 if the market allows it, may also be able to solve the LBO set up in 2016. Both BNP Paribas and Sofival have bought stakes in Digital Virgo alongside 21 Centrale Partners. They hold together 30%. Founders and leaders own 70%.
BNP Paribas and HSBC have been selected to work on the IPO.
By Olivier Pinaud, Agefi Journalist, 02.07.2018