proAlpha Software AG Investment


CompanyproAlpha Software AG
Initial Investment DateJuly 2007
ExitOctober 2013
Entry Valuation34.5m
Exit Valuation160m
Total Investment9.5m
Current Sale Value41m
2017 Revenue65m
2017 EBITDA15.4m
Initial Ownership28%
Investment TypeReplacement Capital
Seafort Role at EntrySole Institutional Investor
Multiple at Cost4.3x
Gross IRR~27.6%


Business Description and Investment Thesis


proALPHA AG is a highly profitable vendor of ERP software solutions and related services primarily aimed at medium-sized companies in its core market Germany. Largest independent ERP software vendor in Germany.


Key Investment Considerations


  • Successful management team
  • Scalable software platform
  • Rapid organic growth, high-margin
  • Market leadership and last independent ERP mid-market player
  • in-house R and D
  • broad customer base with substantial repeat business




The original investment was introduced to Seafort (formerly Beaufort) by Berlin Capital Fund. The distressed venture investor held a minority position in proALPHA of 23.7% After identifying a former employee of proALPHA who was willing to sell his shares, Seafort (formerly Beaufort) finally acquired the blocking minority with 27.6%. The founders of proAL-PHA reacted highly positive after Seafort (formerly Beaufort) outlined its investment approach. Seafort (formerly Beaufort) acquired the company in 2007 at an EBIT multiple of 6.0x.


Post-Investment Value Development and role of Seafort


proALPHA AG has performed exceptionally since then, with EBITDA and revenues in-creasing +100% and +60% in 2013, versus 2007.



  • Enlarging customer base and offering new software products
  • Build-up of staff
  • Technical and functional product development
  • Reorganization of the direct sales channel
  • Ongoing development of branch specific solutions and the recruitment of new employees ProAlpha got more and more a very well positioned to constantly attract new customers.


Exit and Valuation


Sold in 2013 to a financial investor (Bregal) for 4.3x MOI

The contract to sell proALPHA to Bregal Capital London (family office of Bren-nikmeyer, warehouse C and A) was signed on August 7, 2013. Valuation was nearly € 160m (incl. net-cash). The closing of the purchase was in October 2013.

Out of this purchase price, BO4 I received an amount of € 38,4m after deduction of costs from € 3.2m gross dividend (09/2013), first purchase price payment of € 31.8m after approval of anti-trust commission (10/2013) and - the second purchase price payment of € 6.5m after squeeze-out of minor shareholders. The second tranche was received on 6th of February 2014.