3i continues software success with Magix IPO
3i, Europe's leading private equity and venture capital firm, announces the successful Initial Public Offering (IPO) of the Berlin based international multimedia software provider MAGIX AG ("Magix") on the Frankfurt Stock Exchange today.
At its IPO, which is 13.2 times oversubscribed, Magix offers 1.35m new shares from a pre IPO capital increase to investors. 3i is taking the opportunity to divest 40% of its shares in the company at this time, making an impressive 3.8 times money multiple on its original investment.
Having backed Magix since 2000 via a total investment of €10m, 3i retains an 11.2% shareholding in Magix (which, if the Greenshoe option be fully exercised, will be reduced to 5.8%). The capital increase proceeds will be used to build up the Magix distribution network, its R&D capabilities and to finance potential future acquisitions.
Magix was formed in 1993 by Jürgen Jaron and Dieter Rein who remain shareholders and active management at the company. Magix is an international provider of multimedia software, online services and digital content both for consumers and commercial customers. Services include the licensing of photographic, video and music software to individual users and the licensing of professional software to commercial music producers and to television and radio broadcasting companies. Based on 2005 sales, Magix is the leading consumer software vendor in Germany and one of the top three leading market players in the US with a competitive European position.
3i Investment Director, Germany, Olaf Bruns said "Magix''s successful IPO today reflects the impressive achievements of the management team whom we''ve been delighted to support over the last five years. The funds raised in the course of the IPO allow them to move forward to the next phase of the company''s development."
David Noble, 3i Sector Adviser for Media said "This milestone in the development of Magix underscores the faith we placed in Juergen Jaron and Dieter Rein, supported by a fantastic team, to build a world-class entertainment software business. We are proud to have been part of their success".
Magix''s IPO today is the latest in a string of successful investments and exits in the software industry for 3i, including examples such as the IPO of Interhyp, the €50m sale of RedDot Solutions to Hummingbird, the sale of Searchspace to Warburg Pincus, the €165m sale of PlaceWare to Microsoft, the €160m sale of Adaytum to Cognos and the €120m sale of Element5 to Digital River.
3i was advised by Berthold Hummel and Dr Katja Heuterkes from Dechert LLP, Munich.
Notes to editors
3i is a world leader in private equity and venture capital. We focus on Buyouts, Growth Capital and Venture Capital and invest across Europe, in the United States and in Asia Pacific. Our competitive advantage comes from our international network and the strength and breadth of our relationships in business. These underpin the value that we deliver to our portfolio and to our shareholders.
3i''s Venture Capital business focuses on investing in scaleable start-up and early-stage businesses. The business currently manages over 200 investments across Europe, US, Asia and Israel, valued in excess of €1bn. 3i''s VC investments fall into four main industry sectors, including healthcare, telecommunications, software and electronics/semiconductors.
3i''s recent software investments include Webpay (online payment), Redlynx (interactive TV), OmPrompt (messaging platform), Mindjet (mindmap visualization), NordNav (GNSS), UDEX (RFID), PriceMinister (online auction), BlueLithium (online advertising), Datanomic (data integrity), Cachelogic (traffic management, UDEX (RFID), with successful realisations for Interhyp (online mortgages). 3i also achieved successful exits from Searchspace, Pedestal, RedDot, Evant and the IPO of Interhyp. For more information, go tohttp://www.3i.com