According to two persons familiar with the issue, private equity company Oakley is trying to sell its controlling share in Contabo, a German cloud hosting platform, in order to capitalize on the demand for cloud computing fueled by the COVID-19 outbreak.
According to those persons, the Munich-based firm might be valued between 700 million euros and 800 million euros ($762.6 million and $871.5 million) in an auction procedure that will take place after the Easter break.
One of the persons said the sale is being handled by London-based consulting company Arma Partners, which is primarily targeting private equity buyers.
According to another source, the firm has already attracted attention from many tech-focused buyout funds, including Hg, Montagu, Vitruvian, Cinven, and IK Partners.
Arma Partners, Oakley, Hg, Cinven, Montagu, Vitruvian, and IK Partners have all declined to comment.
Contabo was taken over by Oakley in 2019 by its creators. According to public documents, the business expects adjusted core earnings of roughly 21.4 million euros in 2021 and revenues of 43.7 million euros.
Oakley gears up to sell German cloud computing firm Contabo -sources https://t.co/m3HIgBpT93 pic.twitter.com/CP8Nq7QfLp
— Zyite.news (@ZyiteGadgets) April 12, 2022
According to Research and Markets, the worldwide cloud computing industry is predicted to rise to $832 billion by 2025, up from $371 billion in 2020, at a compound annual growth rate of 17.5 percent.
During the epidemic, shutdowns of workplaces, schools, and businesses raised the demand for cloud solutions and services, making digital business transformation more critical.
Developers, entrepreneurs, and small and medium businesses utilize Contabo’s cloud hosting platform for web hosting, development, and storage. It offers hosting services in 189 countries.
