Bridgepoint and General Atlantic Team Up to Take French Tech Firm Esker Private for €1.8 Billion

Bridgepoint, a leading private equity firm, and General Atlantic, a global growth investor, have announced a proposed takeover bid for Esker, a French software company specializing in automation of Source-to-Pay and Order-to-Cash processes. The offer, which values Esker at approximately €1.8 billion, is expected to be completed by the end of 2024 or during the first quarter of 2025.

The deal is the latest in a string of acquisitions in the technology sector, as private equity firms continue to seek opportunities to invest in growth-oriented companies. The deal also highlights the growing trend of automation in business processes, as companies seek to improve efficiency and reduce costs.

Key Players and Terms of the Deal

The offer is being made by Boréal Bidco SAS, a company controlled by Bridgepoint, in association with General Atlantic and Esker’s management shareholders. The proposed takeover bid is expected to be launched at a price of €262 per share, representing a premium of 30.1% over Esker’s unaffected share price on August 8, 2024.

The deal is subject to a number of conditions, including regulatory approvals and the acceptance of a majority of Esker’s shareholders. It is also subject to a renunciation threshold, allowing Bridgepoint to withdraw the offer if the shares tendered to the Offeror do not represent more than 60% of the Company's share capital and voting rights. If the legal conditions are met at the end of the Offer, the Offeror will request the implementation of a mandatory squeeze-out procedure.

Why Esker is Attractive to Bridgepoint and General Atlantic

Bridgepoint and General Atlantic see Esker’s expertise in automation of Source-to-Pay and Order-to-Cash processes as a significant advantage. Esker is a leading global player in its category, with cutting-edge products and technology, as evidenced by its remarkable growth in a competitive environment. With its leadership in France, strong presence in other European markets and Asia-Pacific, and a significant presence in North America, Esker aligns perfectly with Bridgepoint’s platform strategy.

Bridgepoint and General Atlantic believe that Esker is poised for further growth, supported by long-term tailwinds towards digitization and an expanding market as businesses navigate increasing operational complexities. They are confident that Esker will continue to extend its leading product offering and international presence.

Esker’s Leadership See the Deal as a Strategic Step Forward

Jean-Michel Bérard, Founder and CEO of Esker, stated, “We are delighted to announce this next strategic step with Bridgepoint and General Atlantic. Their deep understanding of our ‘Office of the CFO’ market and their focus on growth were key factors in our choice. Working with French teams who share our values of profitable growth, employee motivation and technological innovation will enable us to strengthen our position and accelerate our development.”

Emmanuel Olivier, Chief Operating Officer of Esker, said, “We are very excited to be partnering with Bridgepoint and General Atlantic. This transition represents an exceptional opportunity for Esker to accelerate its operational growth. It will enable us to increase our efficiency, optimise our processes and mobilise additional resources in key areas of our development, while strengthening our ability to achieve our objectives.”

The Future of Esker Under Bridgepoint and General Atlantic

The takeover of Esker by Bridgepoint and General Atlantic represents a significant development in the tech sector and could have far-reaching implications for the company. It is expected that Bridgepoint and General Atlantic will use their expertise and resources to help Esker grow its business and expand its reach. The takeover is also likely to lead to further consolidation in the software automation market.

The deal is a testament to the growing demand for automation solutions in the business world. As businesses continue to seek ways to improve efficiency and reduce costs, the demand for automation solutions is expected to continue to grow in the coming years. Esker's position as a leader in this market makes it an attractive target for private equity firms and could potentially lead to the company becoming a major player in the global software automation market.

The Future of Software Automation: What Lies Ahead

The automation of business processes is expected to continue to grow in the coming years, driven by the need for businesses to improve efficiency and reduce costs. Companies are increasingly looking to automation to streamline operations, reduce errors, and improve compliance. This trend is expected to create opportunities for companies like Esker, which offer software solutions that help businesses automate their processes. The acquisition of Esker by Bridgepoint and General Atlantic is a sign that the private equity industry is confident in the future of software automation. The deal is likely to lead to further consolidation in the market, as private equity firms seek to invest in companies that are well-positioned to benefit from the growing demand for automation solutions.

The future of software automation is bright, and Esker is well-positioned to be a leader in this market. With the support of Bridgepoint and General Atlantic, the company is likely to continue to grow its business and expand its reach. The automation of business processes is a trend that is only going to grow in the coming years, and Esker is well-positioned to benefit from this trend.