Ventech sells Wengo, proving that value can be created even during crisis.
Ventech realized upfront a multiple of 2.5x on this transaction, with an earn-out to increase this multiple to 3x. The IRR on this first exit of the Ventech Capital III Fund is already 117%.
The tie-up with a large industrial group will allow Wengo to step up its development as a communication and service provision platform for exchanges between individual users.
Ventech itself had overseen the spin-off of this company incubated by Neuf Cegetel in 2007. It became a fast commercial success by developing several vertical consulting offerings for consumers such as distance learning, legal advice or astrology.
Through the www.wengo.fr website, Wengo connects service providers and customers, supplying them with a full range of communication technologies including traditional telephony, VoIP, video conferencing, chat, instant messaging and document sharing.
Wengo also handles billing and payment for providers in partnership with banking institutions.
“The management team has been able to exceed all the targets we set since the commercial launch in 2008,” says Jean Bourcereau, General Partner at Ventech. “Today, the tie-up with a powerful group will enable the company to definitively establish its leadership in France and accelerate its rollout.”
In the words of CEO David Bitton, “The considerable work done to prepare for the spin-off in collaboration with Ventech allowed Wengo to adjust its marketing positioning and extract maximum value from the technological platform at its disposal, thus creating its market in record time.”
The Wengo founders will retain their positions to oversee vertical expansion into new segments and geographic markets, allowing all users with special skills to create work-from-home jobs for themselves.