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IDI

CR 		Bloomberg   IDIP FP
Holding Companies  /  France  Web Site   |   Investors Relation
Private equity players buffeted by macro-economic headwinds
Target
Upside 37.7%
Price (€) 74.6
Target Price (€) 103
Market Cap (€M) 540
Perf. 1W: -0.53%
Perf. 1M: 2.75%
Perf. 3M: 11.7%
Perf Ytd: 10.7%
10 day relative perf. to stoxx600: -0.07%
20 day relative perf. to stoxx600: 3.59%
Latest25/11/2021
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IDI’s tech-SPAC enters negotiations with French B2C parcel delivery frontrunner Colis Privé

DEE Tech, a SPAC that counts with IDI as sponsor and investor, has entered into exclusive talks with Colis Privé, one of the leaders in business-to-consumer parcel delivery for e-merchants in France. This potential deal confirms the attractiveness of DEE Tech as the first tech SPAC in France and is a welcome addition to IDI’s growing roster of digitally-native businesses that are supported by strong underlying trends.


Fact

  • DEE Tech has entered into exclusive talks with Colis Privé for a merger between both companies, with the combined entity to be listed on the Euronext Paris.
  • Colis Privé is the leading private sector parcel delivery operator in France, with an average of 270k packages delivered per day as of the end of June 2021.
  • DEE Tech is the first tech-focused SPAC to be listed on the Euronext Paris, at the end of June. Founded by five investors and entrepreneurs, including IDI, the objective was to invest in a high-potential tech company in the fields of digital and e-commerce solutions.

Analysis

Just five months after IDI announced its investment in DEE Tech, the listed acquisition company is on its path to merge with one of the leading firms in the French e-commerce solutions space. Colis Privé is a recognised player in this fast-growing market, counting Amazon as one of its key customers in addition to more than 200 e-merchants.

Colis Privé reported revenues of €234m in FY20, up +46% yoy, and realised EBITDA of €22m, up +95% yoy. The company has made significant profitability gains over the past three years, with its recurring EBITDA margin increasing from 1.2% to 10.1% LTM at the close of June 2021. In terms of cash generation, the group boasts of strong cash conversion of c.90% of EBITDA as of 2020.

Regarding the financial terms of the deal, the proposed transaction is based on an equity value of Colis Privé of €550m. The existing shareholders of the target company would transfer 100% of the outstanding shares to DEE Tech in exchange for €330m in new shares in the SPAC and €220m in cash. As a reminder, back in June, DEE Tech raised €165m in a private placement from investors, including “up to” €15m contributed by IDI. To fund the transaction, the remainder will be financed through an estimated €50-80m PIPE investment (private investment in public equity), with the final amount being subject to increased redemption requests.

The SPAC reverse merger would support Colis Privé in expanding its business in and outside of France, leveraging the expertise and network of the DEE Tech team in the European tech space, which includes serial tech entrepreneur and founder Marc Menasé, as well as top executives from e-retailer Veepee and IDI’s managing partner Julien Bentz.

For IDI, this is an attractive entry into the portfolio, as it is an asset that benefits from the strong underlying trends behind e-commerce, supporting NAV growth ambitions.


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