A Qatar-based Mannai Corporation has announced its plan to buy a 51% stake in a French IT services group Gfi Informatique to accelerate its international expansion beyond France and Southern Europe where the company currently operates in total of eight countries.
Mannai, which has been listed on the Qatar Exchange since 2007, offers a broad range of products and services that include heavy equipment distribution and service, IT, retail, telecommunications as well as home appliances, electronics and engineering services, says it sees a potential to take Gfi Informatique global and speed up its growth as a leading IT services and software group in the region of Europe, the Middle East and Africa.
In 2014 almost 15% of the revenue of the French group was earned outside of its domestic market and since then the company has launched a new phase of its business strategy which revolves around an increase the value added of its combined services and software and is aiming at international expansion, it says.
The acquisition would offer an opportunity to gain a Qatari investor with an expertise in the IT services industry and a capability to support such a growth, especially in the Middle East.
At present, 80% of the equity and voting rights of GFI is held jointly by Apax France and an independent group managing long-only and alternative funds Boussard & Gavaudan.
Under the terms of a deal, Mannai will acquire and hold a 51% equity and voting rights stake, on a fully diluted basis, at a price of €8.50 per share. The price values Gfi Informatique at approximately €561m.
Additionally, following the acquisition, there will be no changes to the company’s management team which would include eleven directors, where two would represent Mannai, two would come from Apax France and five will be independent.
“Mannai Corporation becoming our majority shareholder perfectly matches our group’s business projects and reinforces our growth plan. In addition, it demonstrates the relevance of the strategy implemented since 2009, maintains the teams and the management of Gfi Informatique and opens up promising development prospects,” says Vincent Rouaix, CEO of Gfi Informatique.
“This acquisition is in line with Mannai Corporation’s stated objective of growing its business through diversifying its earnings internationally. Mannai Corporation’s IT operations in Qatar and India provide a complementary platform for Gfi Informatique’s expansion into these markets. Being a long-term shareholder, Mannai Corporation aims to accelerate Gfi Informatique’s growth and international expansion strategy,” adds Alekh Grewal, Mannai Corporation Group, CEO.
Gfi is a specialist in IT value-added services and is organised around four business lines which include consulting services, outsourcing, system integration and software solutions.