12 rue Léon Laval L-3372 Leudelange
R.C.S. Luxembourg B 27846
Luxempart will partially exit its investment in Marlink
Luxembourg, September 13, 2021
Luxempart is about to sell a substantial part of its stake in Marlink to Providence Equity Partners, a premier asset management firm with approximately $45 billion in aggregate capital commitments. Luxempart acquired a minority stake (<10%) in 2016 alongside Apax Partners, a leading private equity fund in Europe, lead investor, and other co-investors close to Apax. The selling shareholders will retain a strong minority position alongside Providence in the new transaction. The sale is expected to be closed in Q1 2022, but remains subject to customary regulatory approvals.
Marlink is a world leader in providing commercial satellite communications focusing on maritime and remote land communication services. In the satellite communication value chain, Marlink sources space capacity from satellites network operators, operates its own land infrastructures, as well as designs, engineers and manages smart network solutions, based on an intelligent hybrid networks and digital solutions. Since 2016, the company successfully implemented its value creation roadmap by (i) delivering broadband migration, (ii) developing additional value-added services, (iii) boosting the profitability of its land division, (iv) increasing its geographical reach, and (v) consolidating a highly fragmented industry.
Luxempart strongly believes in the further development potential of Marlink. We have therefore willingly agreed to re-invest a portion of our proceeds alongside the management team and the new controlling shareholder.
This partial exit will allow Luxempart to crystalize an attractive cash return on its invested capital, with immediate cash proceeds in excess of € 25m (net of reinvestment) while confirming an overall IRR above our long-term target of 12-15%.
Luxempart is a Luxembourg-based listed investment company with a net worth of EUR 1.9bn backed by Luxembourgish entrepreneurial families. With permanent capital and a professional investment team, Luxempart provides flexible long-term financing solutions to entrepreneurs, families and management and actively supports its portfolio companies in their growth and international expansion. Luxempart's Direct Investment strategy consists in investing equity tickets ranging from EUR 25m up to EUR 100m in the DACH region, France, BeLux and Northern Italy.
Contact: Jo Santino +352 437 43 5101