KKR to Acquire Minority Stake in Cegid for €5.5B

Global investment firm KKR & Co. (KKR) has agreed to acquire a minority stake in business management software solutions provider Cegid at an enterprise value of €5.5 billion. The transaction is expected to close by the end of Q3.

France-based Cegid provides functional as well as vertical cloud-based solutions to more than 350 thousand companies and 4.5 million users around the globe.

Silver Lake, an investor in Cegid since 2016 will continue to remain a majority investor post this transaction. With a focus on SaaS solutions, next-generation cloud products, and value-adding acquisitions, Cegid has experienced double-digit growth in both top line and bottom line.

Jean-Pierre Saad, Head of EMEA Technology at KKR, and Jerome Nomme, Head of France at KKR said, “We are excited to be part of Cegid’s journey going forward. We have followed the company for many years and have been impressed by the growth that Pascal (CEO of Cegid) and his team have achieved, transforming Cegid into a pan-European software leader.” (See KKR & Co stock analysis on TipRanks)

Last month, Credit Suisse analyst Craig Siegenthaler reiterated a Hold rating on the stock and increased the price target to $66 (18.7% upside potential) from $60.

Siegenthaler highlighted KKR’s “strong” Q1 performance, which included stronger-than-expected FRE.

Consensus among analysts is that KKR & Co is a Moderate Buy based on 8 Buys and 3 Holds. The average analyst price target of $64 implies 15.1% upside potential.

Shares have surged 40.2% so far this year.

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