EURAZEO SIGNS AN EXCLUSIVITY AGREEMENT AIMING AT INVESTING IN I-TRACING, A FRENCH LEADING INDEPENDENT PROVIDER OF CYBERSECURITY SERVICES
Eurazeo’s small-mid buyout team1 has signed an exclusivity agreement with the aim of investing in I-TRACING alongside the company’s management and founders Theodore-Michel Vrangos and Laurent Charvériat, who would collectively hold 49% of the company’s equity after completion of the transaction.
Keensight Capital, minority financial shareholder since 2017, would sell its entire stake while Sagard NewGen would invest as a minority shareholder in a holding company controlled by Eurazeo.
The transaction would value I-TRACING at €165 million.
Eurazeo would become an anchor investor of the group by investing around €65 million.
I-TRACING was founded in 2005 and offers a comprehensive range of high-value-added services to secure its clients’ IT systems: consultancy, audits and pen tests, integration of diversified software solutions and associated managed services, identity and access management, operation of SOCs (Security Operations Centers) as well as deployment of cyberattack response units (CERTs or Computer Emergency Response Teams).
Headquartered in Paris, I-TRACING employs more than 285 experts who help their clients (CAC40, SBF120 and medium-sized companies) with all of their cybersecurity needs.
The company also has subsidiaries in Montreal, Hong Kong and London, enabling the group to offer managed services and support on a 24/7 basis.
In 2020, I-TRACING generated nearly €50 million of revenue, up around 40% vs. 2019, despite the Covid-19 crisis.
The company targets around €70 million revenues in 2021.
Eurazeo’s small-mid buyout team, Sagard NewGen and I-TRACING’s management share the ambition of building a leading European provider of cybersecurity services.
This would entail an acceleration of the company’s growth through further expansion, capitalizing on its high level of expertise as well as the rapid growth of its market and underlying demand.
The new chapter is also aiming at pursuing an active buy-and-build strategy, with several targets already identified, as well as supporting I-TRACING’ clients internationally.
Pierre Meignen, Member of Eurazeo PME’s Executive Board, said:
“We are delighted to be involved in I-TRACING’s project. Eurazeo ambitions to provide long-term support to Théodore-Michel Vrangos and Laurent Charvériat in their growth strategy and contribute to the emergence of a European leading independent provider of cybersecurity services. Further than its financial support, Eurazeo would bring the expertise and support of its experienced teams located in 10 countries around the world and its international business network. We can’t wait to actively back the group in a new active phase of its development.”
Théodore-Michel Vrangos and Laurent Charvériat, I-TRACING’s two Founding Partners, underlined:
“We are very pleased to enter I-TRACING’s a new phase of development alongside Eurazeo and Sagard, to write a new chapter in our journey as an independent company, 15 years after it was founded. Since 2017, we have successfully passed critical steps with the help of Keensight Capital’s teams: we have tripled our revenue in a four years’ time, structured our offering and our organization, doubled our workforce, accelerated our international growth and made our first add-on. We very grateful for their valuable support. From now on, with the assistance of Eurazeo and Sagard, we will accelerate our growth both in France and internationally in Europe, Asia and North America, accompanying our major French and European clients in all of their cybersecurity needs. We will ensure to maintain our values and mindset, the quality and expertise of our services, commitment to our clients in a thrilling environment for our staff.”