BC Partners acquired PlusServer, a managed services data hosting provider, from GoDaddy in July 2017 for an enterprise value of €397m. Prior to the deal completing, BC Partners engaged Intuitus to provide technology due diligence ahead of the carve out process.
PlusServer is the market leader for managed hosting in Germany, Austria and Switzerland. The company operates ten data centres, seven of which are located in Germany, and currently hosts over 4,000 corporate clients from 52 countries.
PlusServer was acquired in early 2015 by Host Europe Group (HEG), which was formerly owned by Cinven and got sold to GoDaddy, a large American domain registrar, in December 2016. Following the acquisition, HEG was split into managed hosting and mass-market divisions, with the mass-market hosting being the focus of the GoDaddy brand and the managed hosting division operating under the PlusServer brand.
As part of the carve out of HEG into a standalone operation, BC Partners engaged Intuitus to assess the technology operations at PlusServer and the complexity of IT separation from HEG / GoDaddy.
How Intuitus helped
The carve out due diligence undertaken by Intuitus comprised of a number of different areas. Firstly, Intuitus consultant Alan Lorimer assessed the main data centre’s operations and capacity, including the software and operating systems used by PlusServer. Alan is an IT professional and business leader with over 20 years’ experience in reviewing and applying best practice to the design of data centres.
A parallel phase of due diligence, led by Intuitus consultant Alan Stedall, involved an assessment of the status of preparations (by both GoDaddy and PlusServer) to achieve separation and allow PlusServer to operate as an independent business.
Results, Return on Investment and Future Plans
The Intuitus report provided reassurance with regards to the status of the IT, which gave BC Partners the confidence to proceed with the carve out, knowing that IT and technology were not going to act as barriers. Intuitus provided recommendations on how the technology and IT landscape should be structured, as well as timings.
About our Carve Out Due Diligence Services
Intuitus’ carve out due diligence provides an expert evaluation of the requirements and preparations for both IT transition and separation to the extent that the investor can be confident that the transition agreement, the relevant plans and their underlying cost models have been well thought through and are credible prior to deal completion.
Intuitus conducts an initial review for our investor client to determine to what extent both the subsidiary and its parent business are preparing appropriately for IT transition and we provide quick feedback.
Where required, we will advise the subsidiary with regard to its future IT strategy (as a stand-alone entity, or NewCo), as this will potentially affect whether existing systems should be retained or replaced. We will also assess the fitness for purpose of the subsidiary’s technology and / or IT operations, insofar as they will be retained post-completion.
To find out more about Intuitus' Carve Out Due Diligence services get in touch.