Silvertree / Ignite Group
In refinancing and substantial expansion of facilities to facilitate buy & build
- In September 2023, Avaxa was engaged by Ignite Group (previously: Vindsubsidies), a leading tech-enabled innovation consultancy and software provider.
- Its core services help companies identify and obtain innovative tax incentives and financing including R&D tax credits, national and EU grants. Through its full-service offering, Ignite Group supports the client across the entire subsidy application lifecycle, enabled by extensive expertise and tech-enabled solutions.
- Ignite was acquired by tech-focused and sector specialist private equity firm SilverTree in 2021. Under the partnership with SilverTree, Ignite Group has executed a successful buy & build strategy, with 6 add-ons acquired and integrated up to date.
- Ignite generated > EUR 20 mln revenue in 2023 and serves its > 2.000 customers with some 175 fte from several locations in the Netherlands and Germany (Ignite has been active in Germany since the acquisition of Dorucon in 2023).
- Avaxa solely focused on approaching credit funds, as these were most likely to be able to provide the debt quantum and flexibility required by Ignite. Avaxa prepared an information package including bank presentation, financial base case model, Request for Proposal and Head of Terms/Commercial Grid. Avaxa also supported Ignite in preparing management meetings with prospective lenders, and calls with due diligence providers.
- The key in structuring the financing was to raise sufficient acquisition financing in order to facilitate the further buy & build strategy, as Ignite has a well-filled pipeline of actionable M&A deals. Also, a lot of attention was paid to optimize the company’s covenant setting, in order to maximize Ignite’s headroom.
- Avaxa supported the company in negotiating the (LMA based) documentation, with the financing package consisting of a TLB and Acquisition Facility. Part of the financing included ‘overfunding’ to accommodate the company’s working capital needs.
- The transaction closed in June 2024.
- For more information, please refer to the press release of SilverTree Private Equity: https://ignite-group.com/news/silvertree-equity/.
