Exclusive Networks verifies interest from investors

Rumours of a go-private deal first originated in March

European distributor Exclusive Networks has addressed the rumours of a go-private move less than three years after its stock market debut.

In March a report from Reuters speculated Exclusive might be returning to private ownership following rumours its largest shareholder was contemplating taking the distributor off the Euronext Paris.

Private equity firm Permira was reportedly involved.

Following these reports, Exclusive Networks has now confirmed the PE interest.

"Exclusive Networks confirms receipt of a non-binding indication of interest from a consortium of investors led by Clayton Dubilier & Rice and the Company majority shareholder Everest UK Holdco Limited (an entity controlled by Permira), at a price of EUR24 per share," it said in a statement.

"There can be no certainty at this stage that these discussions will result in any agreement or transaction, or as to the terms, conditions, and timing of any transaction."

The distributor added a further announcement may be made if and when appropriate.

Less than three years public

Permira first invested in Exclusive back in 2018.

Following the VAD's IPO in 2021, Permira held 55.2 per cent of the capital and voting rights in the Exclusive Networks business.

The distributor posted a 6.4 per cent increase in gross sales to €1.26bn (£1.07bn) in its Q1 2024 results, with EMEA continuing to be its biggest growth driver.

Hardware decreased to 24 per cent of the group's sales (vs 27 per cent in Q1-23), software was 50 per cent (vs 47 per cent in Q1-23) and support & maintenance stood at 26 per cent (26 per cent in Q1-23).

Cloud accounted for 34 per cent of the Exclusive's sales in Q1-24, up 6 points compared to Q1-23, in line with its digital growth strategy.