Information on the Target

Your.World (the 'Company') is a prominent European online solutions provider based in Amsterdam, having been founded in 2016 by Strikwerda Investments. The Company specializes in web hosting, online productivity, and managed IT services, having rapidly ascended to a leadership position in its sector. Currently, Your.World employs over 2,000 personnel, operates 45 diverse brands, and caters to more than one million customers through its two primary divisions: Your.Online and Your.Cloud.

Underpinned by a serial acquirer model focused on sustainable value creation, Your.World has effectively leveraged scalable mergers and acquisitions across multiple verticals and geographies. This strategic approach has not only amplified its serviceable addressable market over the past five years but has also led to a significant increase in merger and acquisition opportunities.

Industry Overview in the Target’s Specific Country

The online solutions sector in Europe is experiencing rapid growth, driven by digital transformation across small and medium enterprises (SMEs). The escalation in demand for robust web hosting services and managed IT solutions is a response to the increasing reliance on digital operations, especially in the wake of recent global shifts toward remote work and online business models.

Moreover, the market is characterized by a high level of fragmentation, presenting unique opportunities for consolidation. Companies like Your.World, which adopt aggressive M&A strategies, are well-positioned to capitalize on this fragmented landscape, allowing them to enhance their service offerings and optimize resources.

The European online solutions industry is projected to continue expanding as businesses increasingly recognize the importance of establishing a strong digital presence. As competition intensifies, there is a notable trend towards integrating advanced IT solutions, enabling companies to improve operational efficiency and customer engagement.

Regulatory changes aimed at enhancing digital security and data protection are also shaping the market landscape, driving demand for compliant solutions. Companies that prioritize sustainable practices and cybersecurity will likely benefit in this evolving regulatory environment.

The Rationale Behind the Deal

Your.World's recent partnership capital raise of €800 million from Ares Management Credit funds and Carlyle is a strategic move aimed at accelerating its growth trajectory. The injection of this long-term capital enables the Company to potentially expand its M&A activities further, targeting high-value opportunities that align with its operational expertise.

This capital infusion not only bolsters Your.World's financial position but also positions the Company more competitively within the rapidly evolving online solutions sector. As stated by CEO Robin van Poelje, this partnership reinforces their commitment to delivering superior solutions while pursuing ambitious long-term growth objectives.

Information About the Investor

Ares Management Corporation and Carlyle are both prestigious global investment firms that bring substantial expertise and resources to the table. Ares Management specializes in providing flexible financing solutions across various asset classes, including credit and private equity, managing approximately $464 billion in assets as of September 30, 2024. They focus on creating value through strategic partnerships with high-quality businesses.

Carlyle, managing approximately $447 billion in assets, conducts operations through diverse segments such as Global Private Equity and Global Credit. With a robust track record of investing in high-potential companies, Carlyle is recognized for its deep industry expertise and commitment to driving long-term impact in the sectors they operate within.

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The strategic partnership between Your.World and its investors, Ares and Carlyle, presents a potentially strong investment opportunity. Given the growing demand for online solutions amid a rapidly digitalizing economy, Your.World's established market presence and innovative strategies position it favorably for substantial growth.

From an investor standpoint, the commitment from reputable firms like Ares and Carlyle highlights the confidence in Your.World's ability to execute its growth strategy effectively. Their combined expertise will not only provide necessary capital but also foster strategic support that could enhance operational efficiencies and drive expansion initiatives.

However, while the growth potential is significant, it's crucial to consider the competitive landscape and potential market disruptions. The online solutions sector is characterized by rapid technological changes and evolving consumer preferences, which require agile responses from companies to maintain relevance and market share.

Overall, if managed effectively, this investment could yield considerable returns for stakeholders in the long run, particularly as Your.World continues to leverage its M&A strategy to enhance its market position and service offerings in the expanding European online solutions market.

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