Altamir - Registration Document 2016

30 / 182

1 FINANCIAL AND LEGAL INFORMATION
Presentation and history of the Company
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
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.
30 REGISTRATION DOCUMENT 1 ALTAMIR 2016