WINCH CAPITAL 3 JOINS THOMSON VIDEO NETWORKS, A GLOBAL LEADER IN ADVANCED VIDEO COMPRESSION SOLUTIONS, ON AN AMBITIOUS GROWTH PLAN
WINCH Capital 3, run by Edmond de Rothschild Investment Partners, has bought a 49 percent stake in Thomson Video Networks
Thomson Video Networks is a global leader in video compression systems. Specializing in head-end networks, the company offers operators, suppliers of video services, and video broadcasters comprehensive compression and transcoding solutions to ensure top-quality video signals and optimized bandwidth whatever the network (satellite, terrestrial, IPTV, cable, or OTT). The group, headquartered at Cesson-Sévigné, has 16 sites throughout the world and employs more than 400 people. Sales amount to around USD $100 million, of which 90 percent is in exports.
Thomson Video Networks resulted from a spin-off from the Technicolor group in 2011, a deal led by the company’s executive management under Christophe Delahousse and with the assistance of the FCDE investment company. After the large-scale transformation of the newly independent company, Thomson Video Networks’ management wished to accelerate growth and bolster its leadership in its historic terrestrial and satellite TV markets while becoming an essential player in new segments like over the top (OTT) video and IPTV. These new markets are enjoying strong growth with rapid multiplication of content and offerings like live/catch-up video and video on demand via PCs, tablets, and smartphones. To achieve this goal, Thomson Video Networks boasts a revamped product offering, a global sales and field services network, and robust finances.
To accompany Thomson Video Networks on this ambitious growth plan, WINCH Capital 3 was chosen to succeed FCDE after a competitive process organized by DC Advisory. Winch Capital 3 has been joined by CMC-CIC Private Debt and the company’s executive team has reinvested all its proceeds.
“This investment in Thomson Video Networks fully embodies our new WINCH Capital 3 fund strategy: to invest in an international, midsized company with an executive team that has increased its equity stake to roll out an ambitious development project with identified external growth opportunities,” said Sylvain Charignon, partner, Edmond de Rothschild Investment Partners.
Christophe Delahousse, CEO of Thomson Video Networks, added: “We are delighted to have Edmond de Rothschild Investment Partners on board. We are now fully equipped to accelerate growth and deploy our new ‘Behind Every Screen’ strategic approach, combining on-premises and cloud-based resources to help operators preserve video quality and control cost of ownership for broadcast and multi-screen services. Thomson Video Networks will be able to capitalize on its enlarged and innovative product and solutions portfolio, its global sales network, and the financial strength and expertise of Edmond de Rothschild Investment Partners for external growth projects.”
About Edmond de Rothschild Investment Partners
Edmond de Rothschild Investment Partners is the private equity affiliate of the Edmond de Rothschild Group. It is specialised in asset management and private banking with EUR 133.6bn under management and around 2,800 employees in 31 offices, branches and subsidiaries throughout the world. Founded in 1953, the Group has been chaired since 1997 by Baron Benjamin de Rothschild.
Paris-based Edmond de Rothschild Investment Partners is dedicated to minority investments into privately-owned companies. It currently has close to €1.2 billion under management, primarily in life sciences, venture capital and growth capital.
The company comprises 23 investment professionals with broad experience in Private Equity and industry. In Capital Development, Edmond de Rothschild Investment Partners manages Winch Capital 3, a EUR 300m FPCI fund raised in 2014, which offers solutions to French SMEs looking to grow or reorganise their shareholding structure. Its predecessors, Winch Capital (EUR 165m, launched in 2005) and Winch Capital 2 (EUR 250m launched in 2010),are already fully invested with about 20 SMEs remaining in the portfolios.
Investors are reminded that Winch Capital 3 FPCI is a venture capital funds that is more lightly regulated. As such, it is not subject to the approval of the French Financial Markets Authority and may adopt exceptional investment rules. Winch Capital 3 FPCI invests mainly in unlisted companies which are subject to capital loss risk, discretionary management risk and liquidity risk, etc.
For more information: www.edrip.fr