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Valuation of HostEurope acquisition of Intergenia

Congratulations to the folks at HostEurope and Intergenia on their recently announced transaction. 

Information released by Oakley Capital indicates a transaction value of E 210MM and a run rate EBITDA of more than E 20MM putting the purchase multiple in the 10x or less range on run rate EBITDA.  Given the amount of overlap between the two companies, we expect that, post integration, the contribution margin to be very high making this a highly EBITDA accretive transaction for HostEurope further pushing down their effective acquisition multiple.

Oakley reported a 36% IRR on their Intergenia investment.

As always, please feel free to contact us if you have any comments, or questions.

Cheval Capital, Inc.

Disclaimer: This post is for general information purposes and is not meant to be taken as financial advice, a recommendation to buy or sell the stocks mentioned above, a comprehensive discussion of valuation or how to do the calculations discussed. Please be sure to consult your financial advisors when valuing your company, considering the sale of your business or making other financial decisions.

Author: Hillary Stiff is Managing Director of Cheval Capital. She has been an investment banker and CFO, completing M&A transactions and arranging financing for a number of companies including NTT/Verio, The Endurance International Group and Web.Com among many others. She has helped complete over 270 successful web hosting, ISP and related transactions and distributes a list of hosting and related companies that are for sale.