Keensight Capital has entered into an agreement for the acquisition of Smile – the European leader in digital and open source

Lincoln International is pleased to announce that Keensight Capital has entered into exclusive negotiations for the acquisition of a majority stake in Smile – the European market leader in digital based projects on open source technologies – investing alongside with Management and Eurazeo PME.

Founded in 1991, Smile has become a pivotal player in its market, thanks to a unique service range combining technical and business expertise in the areas of digital technology, E-business, embedded systems, the Internet of things (IoT), infrastructures and business apps. Relying on the best open source solutions, Smile’s ambition is to free up IT to release the innovative potential that lies in all companies.

With nearly 1,700 employees, Smile will generate c. €130m revenues in 2019. Reporting significant annual growth of 20% since 2007 and expanding internationally with 15 agencies in 7 countries, Smile is managed by an experienced and dedicated team led by Marc Palazon, Chairman of the Executive Board since 2007. In addition, the Group has successfully demonstrated its ability to pursue strategic development of its business, in particular by acquiring Virtua, Adyax and SensioLabs in 2018.

With Keensight’s backing, Smile will benefit from an international network and leading edge ICT expertise, as well as Eurazeo PME’s added value in terms of acquisition process. Smile will also be in a position to take advantage of new funding for the roll-out of its “Open Arrow 2.0” strategic plan, which will be driven by twin objectives: expand internationally and accelerate its advisory offering.

Lincoln acted as exclusive financial advisor to Keensight Capital for this transaction, providing both M&A and Debt Advisory services.

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