markrubens - Fotolia
Exclusive heading back into private hands
Distributor’s board and founder back bid to usher in fresh majority shareholder
Exclusive Networks looks to be heading back into private hands after the distributor indicated it had received an offer that would end its public status.
The firm shared its H1 numbers last week, along with an update on an offer, backed by its founder, to take the business back into private hands.
Exclusive has received a binding offer from Clayton Dubilier & Rice (CD&R) to form a consortium composed of CD&R, the distie’s majority shareholder, Everest UK HoldCo Limited, and the distributor’s founder, Olivier Breittmayer, who will remain a shareholder.
The consortium will acquire a majority shareholding in Exclusive at a total amount of €24.25 per share.
Exclusive’s board unanimously backed the plan, which will have to go through statutory approval processes before it gets the green light.
Jesper Trolle, CEO of Exclusive Networks, used his comments covering the firm’s H1 numbers to emphasise the strength of the business and the benefits of operating in the cyber security market. “We had a strong first half of the year, amidst continued soft market conditions,” he said. “Gross sales growth accelerated steadily over the first half, positioning the business well for the second half of 2024.
“This outcome reflects the strength, diversification and resilience of our business model. Our reputation as a trusted partner is valued by vendors and customers alike, with retentions rates consistently above 100%, laying the foundation for our continued growth.”
Gross sales increase
The distie saw its gross sales increase by 10% to €2.564m, net margin growth to €235m at 9.2% of gross sales, and adjusted EBIT at €88m – close to 38% of net margin.
Exclusive has followed a twin strategy of extending relationships with existing vendors across more geographies and using acquisition as a means of adding territorial coverage and access to more skilled staff.
Those strategies were in evidence in H1, with the firm picking up Nextgen Group to bolster activities in APAC.
“During the 1H of 2024, we completed the acquisition of Nextgen Group in ANZ and APAC,” said Trolle. “The integration is well underway, and we are pleased to announce that they contributed to a full first quarter in our books and boosted our Gross Sales growth to 11%.
“The continued emphasis on cyber security by CIOs, combined with our unique business model and established growth strategies, positions us well for sustainable growth and success. Looking ahead to FY 24, we remain optimistic about our prospects and are confident in achieving our full-year guidance.”
Public company
Exclusive Networks became a public company back in September 2021, listing on the Euronext in Paris. Under the ticker symbol EXN, the firm started public life with a strong demand for shares, enjoying an offering that meant its market capitalisation valuation was in the region of €1.8bn.
Since, then the channel player has consistently delivered growth in its quarterly numbers and managed to grow the business beyond its EMEA heartlands.
The firm’s board will issue updates on the progress of the move to take the business private with the bid getting the scrutiny of an independent expert in the meantime.
