Altamir - Registration Document 2016

1

FINANCIAL AND LEGAL INFORMATION Presentation and history of the Company

www.infovista.com

1) Business description InfoVista is one of the world’s leading providers of network performance software solutions for communications service providers, mobile operators, IT-intensive enterprises and government organisations. Headquartered in Paris, this international company delivers software and services to over 1,200 customers in more than 120 countries. 2) Why did we invest? InfoVista is a leadingworldwide softwareprovider innetwork and applicationperformance solutionswithpremiumpositioningand real value-added to clients (the top 10 world telecomoperators are all clients of InfoVista). The company addresses a growing market. Telecom operators are spending increasing amounts on network planning and optimisation andon service assurance, due to the continued roll- out of newtechnologies. Meanwhile, given the complexnetworks and multitude of applications used by IT-intensive enterprises, there is a growing need for more efficient enterprise application performance management. InfoVista’s business model is resilient, with (i) a diverse and sticky client portfolio of 1,200 customers, (ii) more than 50% of revenues generated by recurring maintenance, (iii) 70-80% penetration among Tier 1 telecom operators, and (iv) an asset- light business model with strong cash generation. In addition, the company is very international, with direct presence in 13 countries and products distributed in more than 120 countries. It has a strong buy-and-build track record and numerous opportunities to acquire new technologies and/or enter adjacent markets by pursuing its build-up strategy. 3) How do we intend to create value? Our investment thesis consists in driving growth in historical businesses, through larger contracts, notably with OEMs; harnessing cross-selling synergies from the recent acquisition

of Ipanema; executing a accretive build-up strategy by acquiring new technologies and/or entering into adjacent markets; and exiting with potential multiple expansion, thanks to a business profile appealing to another round of LBO and strong potential appetite from trade buyers. 4) What has been achieved? The company has conducted twonewhires, VPSalesOperations andVPSalesApplicationPerformanceGuarantee, to strengthen sales and deliver cross-selling synergies. In September 2016, InfoVista acquired the US company TEMS, a worldwide software leader in mobile testing and measurement for mobile operators. As a result, the company nearly doubled in size, posting pro forma revenue of almost €200m. 5) How is it performing? InfoVista continues to grow, both organically and through acquisitions. The first half of the 2016-17 financial year (July-December 2016, excluding the recently acquired TEMS scope) was marked by a strong performance of the recurring software maintenance business (6% year-on-year revenue growth). The Ipanema business line also performed strongly, gaining 22%, with large contracts signed in the United Kingdom. However, the Service Assurance and Network Planning & Optimization products lacked traction in mature markets. TEMS is being integrated as planned, particularly with regard to synergies. As of 31 December 2016, as a company held in the portfolio for less than one year, InfoVista was valued at cost. 6) How will we crystallise value? The combination of a resilient business model, strong growth, best-in-class operational performance, and high cash flow conversion should be highly attractive at exit for both financial and trade buyers.

Sector

Country

Date of investment

Residual cost in €m

Fair value in €m

% of the portfolio at fair value

France

2016

39.1

39.1

4.5

30 REGISTRATION DOCUMENT 1 ALTAMIR 2016

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