Information on the Target

Squad, founded in 2011, is a consulting firm specialized in cybersecurity and DevOps, with a significant presence across France and in Australia. The company operates seven agencies in France, including locations such as Paris, Lyon, Toulouse, Aix-en-Provence, Sophia-Antipolis, Nantes, and Rennes, alongside its office in Adelaide, Australia. Squad has demonstrated robust organic growth, generating approximately 53 million euros in revenues and serving a clientele primarily composed of large corporations.

Recently, Squad received the PASSI certification from the ANSSI (National Cybersecurity Agency of France), underscoring the high technical proficiency of its team and its commitment to securing the systems and infrastructures of its clients. The organizational structure is enhanced with the participation of co-founders Eric Guillerm and Marc Brua as well as around fifteen associate managers, providing a solid foundation for future developments.

Industry Overview in France

The cybersecurity industry in France is experiencing substantial growth, driven by increasing digital threats and organizations' heightened focus on protecting sensitive data. According to market research, the sector is projected to expand rapidly in the coming years, reflecting a global trend towards greater investment in cybersecurity solutions.

France's regulatory environment, characterized by stringent data protection laws and policies, further propels the demand for cybersecurity services. Businesses are increasingly required to adopt robust cybersecurity measures, creating a lucrative opportunity for consulting firms like Squad to offer specialized expertise.

Additionally, France has made significant investments in enhancing its national cybersecurity strategy, resulting in an influx of funding and resources dedicated to strengthening the country’s cyber resilience. This favorable environment is conducive to the growth of firms specializing in cybersecurity consulting and services.

The competitive landscape is populated by both established giants and innovative start-ups, emphasizing the need for agility and quality in service offerings. Companies are continually seeking out solutions that not only comply with regulatory requirements but also leverage advanced technologies to safeguard against evolving threats.

The Rationale Behind the Deal

The agreement between Squad and Abénex marks the entry of new investors while facilitating a reorganization of the existing shareholder structure. This shift allows Apax Partners Development to exit while ensuring the continuity of the current management team and the active participation of new associates.

This strategic partnership is expected to provide significant financial resources aimed at supporting Squad's organic growth trajectory and enabling potential acquisitions, thereby positioning the company for further expansion in a rapidly evolving market.

Information About the Investor

Abénex is a prominent investment firm that focuses on partnering with high-growth companies across various sectors. Known for its strategic investments, Abénex aims to nurture and develop businesses, helping them reach their full potential in competitive landscapes.

With a strong commitment to fostering growth and operational excellence, Abénex believes in leveraging its expertise to amplify the strengths of its portfolio companies. Their involvement with Squad reflects a strategic move to capitalize on the burgeoning cybersecurity market.

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The exit by Apax Partners Development and the investment from Abénex could represent a promising opportunity for both firms, given the strong growth prospects of the cybersecurity market in France. This deal aligns well with the increasing demand for cybersecurity solutions, placing Squad in an optimal position to leverage its expertise and expand its offerings.

The ongoing partnership with the existing management team ensures stability and continuity, which are crucial in maintaining strategic direction amid changes in ownership. Furthermore, the fresh capital injections can facilitate Squad's ambitions for external growth, potentially accelerating its market share in the cybersecurity sector.

While the deal reflects a sound investment in a thriving industry, the execution of the growth strategy will be vital in realizing the full potential of this partnership. As the cybersecurity landscape continues to evolve, timely adaptations and innovative approaches will be necessary to stay ahead of the competition.

Overall, this transaction appears to be a beneficial move for all parties involved, positioning Squad for future growth while also providing Abénex with an opportunity to invest in a well-established and agile firm within a high-demand sector.

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