TA Associates Enters Exclusive Negotiations for Majority Growth Investment in DL Software

TA Associates, a leading global growth private equity firm, announced that it has entered exclusive negotiations to make a majority growth investment in DL Software, a leading France-based group of enterprise resource planning (ERP) software providers. Current DL Software majority shareholder 21 Invest France, as well as company founders and management, would each retain a stake in the business following TA’s investment. The envisaged transaction, which is currently under review by representatives of the company’s employees, is expected to close in the second quarter of 2021, subject to customary approvals. Financial terms were not disclosed.

“We have enjoyed collaborating with DL Software, helping to grow the company’s market share over the past several years, and look forward to this next phase in the continuing evolution of the company.”

Founded in 2003, DL Software is comprised of 13 industry-specific ERP software vendors serving a variety of end markets in France across the healthcare, insurance, retail, wholesale, real estate and tourism industries. In 2020, the group achieved total revenue of €74 million, up from €48 million in 2016. DL Software provides a number of centralized/corporate resources, including financial, marketing and HR support, and promotes the implementation and sharing of best practices in product development, lead generation, sales execution and customer service. The group employs a total of 550 employees and serves more than 20,000 SME, mid- and large-cap companies. DL Software’s key strategic objectives are to accelerate investment in technological innovation, to deliver high-quality and agile software solutions, and to foster growth for itself and its customers.

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“DL Software has become a leading B2B software player in France through a longstanding strategy of acquiring and growing highly-verticalized ERP vendors,” said Maxime Cancre, a Principal at TA Associates who would join the DL Software Board of Directors. “We are pleased to announce this prospective investment and look forward to partnering with DL Software management and our fellow investors in actively seeking new growth opportunities for the company.”

“It is a pleasure to have the opportunity to welcome TA Associates as an investor in DL Software,” said Jacques Ollivier, President of DL Software. “DL has developed significantly in recent years, both organically and inorganically, and we are excited to combine our know-how with TA’s software investing experience with an aim to deliver sustained strong performance for years to come. With the support of our investors, DL will continue to seek additional acquisition opportunities in France and may consider other markets in Europe.”

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“We have been very impressed with the development of DL Software under the ownership of 21 Invest France and its co-investors, Amundi Private Equity Funds and Swen Capital Partners, and the leadership of Jacques Ollivier,” said Patrick Sader, a Managing Director at TA Associates who would also join the DL Software Board of Directors. “DL Software enjoys a high-quality revenue model and the French ERP market is large, so we see meaningful expansion opportunities for the company. We are very excited to embark on this journey.”

“I join the DL Software team in welcoming TA as a future investor,” said Stephane Perriquet, Managing Partner at 21 Invest France. “We have enjoyed collaborating with DL Software, helping to grow the company’s market share over the past several years, and look forward to this next phase in the continuing evolution of the company.”

De Pardieu Brocas Maffei served as legal counsel, DC Advisory as M&A advisor and Eight Advisory as financial advisors to DL Software and its shareholders. Latham & Watkins served as legal counsel, Bryan Garnier as M&A advisor and KPMG as financial and tax advisor to TA Associates. Jausserand Audouard and Oloryn advised management.

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