Information on the Target

STORDATA, a prominent player in digital transformation founded in 1988, has established itself as a trusted partner for over 500 clients, including mid-sized enterprises and companies listed on the CAC 40. The company specializes in the architecture, administration, and operational maintenance of systems designed for data management and security, particularly in cloud environments. STORDATA provides critical services that enable continuous access to data, allowing clients to leverage their information within a complex and ever-changing IT landscape.

Based in Versailles, STORDATA has experienced significant growth and is projected to exceed €100 million in revenue shortly. The company aims to strengthen its leadership position in its market and accelerate organic growth through diversified service offerings in cybersecurity and cloud solutions. With the forthcoming partnership with Elyan Partners, STORDATA is planning to engage in strategic acquisitions, aspiring to become a leading European platform in its sector.

Industry Overview in France

The digital transformation industry in France continues to thrive, driven by an increasing demand for integrated IT solutions. As businesses navigate the complexities of digitalization, the need for robust data management and cybersecurity services has surged. France's strategic location and technological advancements position it as a key player in the European digital market.

The French government has also prioritized digital transformation as a key component of its economic strategy, promoting initiatives that enhance digital literacy and infrastructure. This focus on digital innovation has fostered a supportive environment for companies specializing in cloud services and data security.

Furthermore, the rise in cyber threats has compelled organizations to invest in advanced cybersecurity measures, creating substantial market opportunities for firms like STORDATA. The increasing sophistication of these threats underscores the importance of partnering with experts capable of delivering cutting-edge solutions in this domain.

As businesses adapt to remote and hybrid work models, the demand for cloud infrastructure and services has intensified. STORDATA is strategically positioned to capitalize on these trends, offering innovative solutions that address the evolving needs of the marketplace.

The Rationale Behind the Deal

The exclusive negotiations for a majority stake in STORDATA by ERES IV, advised by Elyan Partners, align with both parties' ambitions to create a leading European platform in the digital services sector. By combining STORDATA's expertise in data management and cybersecurity with Elyan's investment capabilities, the partnership aims to enhance service offerings and accelerate growth through targeted acquisitions across Europe.

As the digital landscape continues to evolve, investing in STORDATA presents a strategic opportunity to leverage its established client base and market experience while expanding its service portfolio in critical areas such as cloud computing and cybersecurity.

Information About the Investor

ERES IV, a professional fund managed by Edmond de Rothschild Private Equity, focuses on investing in mid-sized companies in Europe and North America. The fund aims to capitalize on sectors such as health services, B2B digitalization, financial services, and new consumer trends. With a robust track record and more than CHF 3.6 billion in assets under management, Edmond de Rothschild Private Equity is known for its entrepreneurial approach and commitment to sustainable investing.

As strategic partners, Elyan Partners will leverage their extensive experience and insights to drive growth within STORDATA. Their collaborative approach to investment underscores their commitment to enhancing the company’s operations and market position.

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The decision for ERES IV to acquire a majority stake in STORDATA indicates strong potential for growth and value creation in the evolving digital services market. Given STORDATA's robust position in the industry and its established client relationships, this partnership could significantly amplify its competitive edge and market reach.

The emphasis on strategic acquisitions as part of the growth strategy further reinforces the long-term viability of this investment. The demand for cybersecurity and cloud services is projected to increase, positioning STORDATA favorably to attract new clients and expand service offerings.

Additionally, the support from a seasoned investor like Elyan Partners should provide STORDATA with the necessary resources and strategic guidance to navigate challenges and seize market opportunities effectively. The combination of STORDATA's operational expertise and Elyan's investment acumen could lead to innovative developments and service improvements.

In conclusion, if executed correctly, this deal could represent a compelling investment, leveraging the strengths of both entities to achieve shared growth objectives while addressing the rising demands in data security and cloud services.

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