Perfect example by Innovacom and Banexi of build to exit by M&A, invest around 10M€, and exit by industrial M&A around 100M€ and generate the 15-25% IRR that will make LP come back into European Technology asset class:
Thomson acquired Inventel for about EUR68 million ($87.8 million) in cash and stock. Inventel raised one round of financing in May 2001 for EUR6 million.
Inventel designs a variety of wireless products aimed at the fixed network, including WiFi and Bluetooth gateways and modem routers and digitally enhanced cordless and wireless phones. Inventel's customers included Internet providers like France Telecom SA, Belgacom NV, and British Telecom and telecom equipment manufacturers.
The transaction included about 3.2 million shares and an undisclosed amount of cash, Thomson's shares closed Monday at EUR21.29, down 11 European cents from Friday. At that price, the stock portion of the deal is valued at about EUR68.1 million. The total price was close to Inventel's expected 2005 revenue of more than EUR100 million.