Sopra Steria (Euronext Paris: SOP), a European leader in digital transformation, today announced plans for a tie-up with Cassiopae, a leading developer of specialised finance and real estate management software.
Sopra Steria plans to acquire, through its subsidiary Sopra Banking Software, about 75% of KSEOP, Cassiopae’s holding company. The founder and his family, and certain managers including the current Chairman, Emmanuel Gillet, will retain about 25% of the share capital. A subsequent acquisition of that 25% is envisioned for 2020 at the latest.
Initially a vendor of real estate leasing software, founded by Guy Gillet in 1987, Cassiopae is currently France’s 16th largest independent software developer (according to the 2015 ‘Truffle 100’ ranking), offering one of the most comprehensive and innovative solutions for specialised finance and real estate management. With operations in 40 countries, Cassiopae posted revenue of €50.2 million in 2014 and serves more than 300 clients.
Banking is one of Sopra Steria’s largest markets and a strategic growth priority. Its subsidiary Sopra Banking
Software is aiming to double its 2014 revenue of €271 million over the next five years.
With that in mind, this proposed acquisition would be an important step forward and would consolidate Sopra Steria’s leadership position in the banking and financial sector. It would also give Sopra Banking Software a full range of business-specific solutions to meet the challenges of the financial industry’s transformation in such areas as distribution, account-keeping, lending, payments and compliance, while addressing specialised finance requirements – real estate and equipment leasing, consumer credit, car loans, factoring and guarantees, etc. The acquisition would also open up new marke ts and enable synergies in sales and costs.
“I will be very happy to have Sopra Steria accompanying us for the next stage of our development”, commented Emmanuel Gillet, Chairman of Cassiopae. “I am convinced that this powerful strategic partnership, with the capacity to generate synergies, will enable us to create even more value for our clients and enhance our growth potential in the market for specialised finance and real estate management. This business combination will also provide stimulating career opportunities for our employees. Moreover, I want to thank my current shareholders, and especially BNP Paribas Développement and Bpifrance, for their steadfast support that has helped Cassiopae develop its business these last 10 years.”
Eric Pasquier, Sopra Banking Software’s CEO, who is also a member of Sopra Steria’s Board of Directors, concluded, “I am very excited at the idea of a tie-up between Sopra Banking Software and Cassiopae that will enable us to address all of our clients’ digital transformation needs. This is a demonstration of our commitment to robust business development in the banking and financial industries.”
This proposed transaction is subject to the usual conditions precedent. If it is approved, Sopra Steria could consolidate Cassiopae in its accounts in the 2nd quarter of 2016.