Cinven prepares to sell European web hosting services firm HEG for around $1.9 bn
27 April 2016
Private equity firm Cinven is preparing to sell Host Europe Group (HEG), a European supplier of web hosting services to small and medium-sized businesses, in a deal that may fetch the private equity firm around €1.7 billion ($1.9 billion), Reuters today reported, citing people familiar with the transaction.
Cinven, which has hired Deutsche Bank to conduct the sale, is expected to send out information packages on the asset to potential bidders in summer, the report said.
The London-based PE firm had acquired HEG in 2013 for €438 million ($640 million).
Private equity firms such as Hellman & Friedman, Permira, KKR, Silver Lake or Warburg Pincus are expected to bid, the report added.
Founded in 1997, HEG is the largest privately-owned hosting group in Europe. It manages in excess of 5.5 million domains, and offers more than 1 million customers mass, customised, managed and cloud web hosting alongside multiple cloud based software applications.
It owns 7 data centre facilities in Europe and the US, and employs over 1,000 people.
HEG has more than 1.7 million customers with over 7 million domain names under management, making it Europe's second largest hosting provider.
HEG is expected to post earnings before interest, taxes, depreciation and amortization (EBITDA), of about €140 million this year, and bidders may value HEG at 12-13 times that, including debt, Reuters said in its report.