Crédit Agricole Private Equity working with Exclusive Networks on a strategic acquisition in Germany

Crédit Agricole Private Equity is working with Exclusive Networks on the acquisition of German company TLK. The acquisition is financed primarily by means of a capital increase subscribed by all shareholders. This is the second acquisition carried out by the company in 2011.
The Exclusive Networks Group, based in Boulogne-Billancourt (Hauts-de-Seine), is one of Europe's leading value-added distributors (VAD) specialising in the marketing of security, storage and networking solutions for businesses.
Crédit Agricole Private Equity acquired a stake in the company in July 2010 during a primary LBO and owns 69% alongside the Chief Executive Officer, key managers, Edmond de Rothschild Investment Partners and Socadif. In June 2011, Crédit Agricole Private Equity worked with Exclusive Networks on the takeover of Vadition in the United Kingdom.
This latest acquisition will enable Exclusive Networks to establish its position in Germany, Europe’s largest market after the United Kingdom, and diversify its portfolio of suppliers.
TLK is a security solutions VAD with the most similar profile to Exclusive Networks. Its positioning is based on marketing innovative products coupled with high-end technical services. It is expected to generate revenues of €38.4 million in 2011.
IT security is a fast-growing market in Europe, presenting growth of 8% a year, driven by the development of new technologies such as cloud computing and mobile services and changes in legislation requiring companies to secure their data.
Olivier Breittmayer, Chairman and Chief Executive Officer of the Group, states: “The acquisition is a key milestone in a long-term strategy by Exclusive Networks Group to create the first ever major, pan-European Value Adding  Distribution business with the skills, relationships and commitment to high-margin, disruptive technologies typically found only among nationally focussed specialist distributors. Exclusive Networks now operates in 13 countries. The group generated revenues of €182 million in 2011 and is aiming for €270 million in 2012.”
Philippe Zurawski, Director at Crédit Agricole Private Equity, comments: “This is the company’s second major acquisition. This strategy of targeted acquisitions should enable it to achieve the target set in 2010 of trebling in size in the space of five years.”