Acceleration of the "One Claranova" plan to create a digital company entirely focused on SaaS software publishing
Regulatory News:
Claranova (Euronext Paris: FR0013426004 CLA or "the Group"), has entered exclusive negotiations with General Atlantic Credit's Atlantic Park fund and PlanetArt's Management Team for the potential sale of its PlanetArt division. This potential transaction would value the division at US$160m1 on a cash-free, debt-free basis (or approximately US$180m of equity value including excess cash and intercompany loans and debts), subject to any final adjustments.
PlanetArt manages a portfolio of websites and mobile applications used by tens of millions of customers around the world into unique personalized products. PlanetArt's range of solutions includes the FreePrints line of mobile applications, and the Personal Creations, SimplyToImpress, CafePress, Gifts.com and I See Me! brands. On June 30, 2024, PlanetArt's revenue represented 365 million euros, or 74% of the Group's revenue, and its EBITDA2 represented 20 million euros, or 43% of the Group's EBITDA. Upon completion of a transaction, Roger Bloxberg and Todd Helfstein would become significant shareholders in PlanetArt LLC and continue in their roles as CEO and President, respectively.
This potential transaction remains subject to the completion of satisfactory due diligence, negotiation and execution of definitive agreements, customary closing conditions and regulatory approvals. Closing is targeted in the second quarter of 2025, once all conditions precedent have been met. To support this process and ensure that there are no conflicts of interest, Claranova's Board of Directors has set up a special committee made up of three independent directors, with authority to, among other things, solicit an expert fairness opinion for this potential sale and submit a recommendation to the Board of Directors. Considering the significance of this transaction for Claranova, the transaction will be submitted to a vote of the Claranova shareholders along with details on how the expected sale proceeds will be allocated.
Towards a pure player in software publishing
This transaction would enable Claranova to focus on its more profitable activities and become a leading pure player in software publishing with a streamlined organizational structure.
Eric Gareau, Chief Executive Officer of Claranova, said: "This transaction is in line with our "One Claranova" strategic plan, as it would improve our profitability ratios and enable us to significantly accelerate our debt reduction. Claranova would thus become an integrated group focused on software publishing and operational excellence. We believe this would speed up our return to profitable growth and open up new development opportunities to create long-term value for our shareholders.
Financial calendar:
March 27, 2025: H1 2024-2025 results
About Claranova:
Claranova is a global leader in e-commerce for personalized objects (photo prints, photo books, children's books, etc.) and software publishing (PDF, Photo and Security). As a truly international group, in 2024 it reported revenue of nearly a half a billion euros, with 95% of this amount originating from outside France.
Through its products and solutions sold in over 160 countries, the Group's mission is to "Transform technological innovation into user-centric solutions". By leveraging its digital marketing expertise, AI and the analysis of data from over 100 million active customers worldwide, Claranova develops technological solutions, available online, on mobile devices and tablets, for a wide range of private and professional customers.
Operating in high-potential markets, the Group will pursue a growth strategy focused on profitability and operational excellence, in line with its "One Claranova" strategic roadmap.
Claranova is eligible for French "PEA-PME" tax-advantaged savings accounts
For more information on Claranova Group:
https://www.claranova.com or https://twitter.com/claranova_group
About General Atlantic Credit and Atlantic Park
General Atlantic Credit ("GA Credit") is the dedicated credit investment platform within General Atlantic, a leading global growth investor. GA Credit's Atlantic Park strategy provides flexible capital to high-quality companies seeking a strategic partner at various stages of the corporate and economic lifecycle. This partnership approach enables Atlantic Park to create customized capital solutions tailored to a company's specific capital needs.
General Atlantic manages approximately $103 billion in assets under management, inclusive of all strategies, as of December 31, 2024, with more than 900 professionals in 20 countries across five regions. For more information on General Atlantic, please visit: www.generalatlantic.com
Disclaimer:
This document contains forward-looking statements that involve risks and uncertainties, including references, concerning the group's expected growth and profitability in the future which may significantly impact the expected performance indicated in the forward-looking statements. These risks and uncertainties are linked to factors out of the control of the Company and not precisely estimated, such as market conditions or competitors' behaviors. Any forward-looking statements made in this document are statements about Claranova's beliefs and expectations and should be evaluated as such. Forward-looking statements include statements that may relate to Claranova's plans, objectives, strategies, goals, future events, future revenues or synergies, or performance, and other information that is not historical information. Actual events or results may differ from those described in this document due to a number of risks and uncertainties that are described within the 2023-2024 Universal Registration Document filed with the French Autorité des marches financiers (AMF) on 31 October 2024 under the filling number D.24-0787.
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1 This amount represents 100% of PlanetArt LLC and does not take into account dilutive elements: the executive officers of PlanetArt LLC, Roger Bloxberg and Todd Helfstein, hold shares in the capital of this company without voting rights and with financial rights, as well as a conversion option conferring to each a right to 10% of the capital of PlanetArt LLC under certain conditions. (FY 2023-2024 URD Chapter 2 Note 33).
2 EBITDA (earnings before interest, taxes, depreciation and amortization) is a non-GAAP aggregate used to measure the operating performance of the businesses. It equals Recurring Operating Income before the impact of IFRS 2 (share-based payment expenses), depreciation and amortization, and the IFRS 16 impact on the recognition of leases.
CODES
Ticker:? CLA
ISIN: FR0013426004
www.claranova.com
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Contacts:
ANALYSTS INVESTORS
+33 1 41 27 19 74
ir@claranova.com
FINANCIAL COMMUNICATIONS
+33 1 75 77 54 68
ir@claranova.com
