Transaction overview
ODiTY, a French technology company specializing in customer experience solutions, acquired Approche sur Mesure (AsM) on February 2, 2021 for $36 million in an all-cash deal. AsM is a leader in luxury client service and has been operating since 1998. The acquisition significantly expands ODiTY's presence in the luxury sector and solidifies its position as a key player in customer experience services.
Deal structure and financing
The transaction was exclusively financed through debt, with Rothschild & Co acting as financial advisor to ODiTY. Inter Invest Capital, an investor that joined ODiTY’s capital in 2017, maintained its stake post-acquisition. Turenne Groupe, AsM's long-term shareholder since 2014, divested all of its shares through the transaction. The deal structure did not include any equity contribution from ODiTY or an IPO option for the future.
Strategic context
ODiTY’s rationale for acquiring AsM is to double its revenue and establish itself as a market leader in luxury customer experience services. With AsM's expertise, ODiTY aims to cater specifically to high-end clients in sectors such as luxury goods, premium automotive, banking, retail, and media. This strategic move complements ODiTY’s existing offerings of digital solutions and software platforms for client interaction management.
For Turenne Groupe, the sale represents a successful exit after supporting AsM's growth over several years. The divestiture aligns with its investment strategy to focus on companies that require further development or restructuring, enabling them to reach their full potential before exiting.
Regulatory path
The acquisition of AsM by ODiTY did not face significant regulatory scrutiny due to the non-competitive nature of the deal within specific luxury sectors. The transaction was reviewed and cleared in France without any required remedies or delays. No details on HSR filings were disclosed, but given the deal's size and sector focus, a filing with the French Competition Authority would have been expected.
The merger approval process was straightforward, reflecting the lack of overlap between ODiTY and AsM’s primary customer bases. The deal's completion was contingent upon obtaining necessary regulatory clearances, which were secured within a reasonable timeframe without any substantial objections from authorities.