On 7 June 2021 Aurica invests in Babel on a minority basis. Aurica, a Spanish private equity firm, has chosen to buy a minority stake in Babel, a Spanish company specialising in the digitisation process of companies. The amount of the transaction has not been made public so far.
As shown in the Investment Analysis of the IT sector carried out by Baker Tilly analysts, the IT market is focused on businesses and know-how that enable organisations to create, manage and optimise or access information and business processes.
Aurica Capital is an independent asset manager based in Barcelona. Founded in 2015, it invests in the growth capital and mid-market segment, specifically in companies with a turnover between 20 and 350 million. What defines this investor is taking minority but significant stakes in companies with a clear vision of growth, such as Babel.
The Aurica team currently manages 200 million between its fund III and some co-investments. This fund, in its final investment phase, is performing well and is targeting high returns. Through it, the fund manager has already made 7 investments.
Babel has more than 1,400 employees and nine offices in Spain, Portugal, Morocco, Mexico and the United States. Founded in 2003, Babel has experienced double-digit year-on-year organic growth.
In 2020 it achieved a turnover of 85 million euros after acquiring the professional services division in Spain of the German multinational Software AG in July of the same year. The objective of this integration was to place Babel among the top ten companies with Spanish capital in the IT consultancy segment, reaching, in 2021, a turnover of more than one hundred million euros and adding more than 2,000 employees.
Aurica invests in Babel with a stake of close to 30% of Babel's capital. The amount of the transaction does not exceed 30 million euros. The objective of this transaction is to guarantee Babel the necessary resources to grow through acquisitions, diversify its business, strengthen its business in the places where it is present or open new offices.
The objective of this investment is to accelerate Babel's organic and inorganic growth. Babel has thus joined Aurica's portfolio.
In terms of upstream activities, in 2020, and after receiving regulatory approvals from the Spanish Securities and Exchange Commission (CNMV), Aurica Capital spun out of Banco Sabadell. Aurica's management team took a majority stake in the fund manager's capital. Banco Sabadell currently holds a minority stake. This transaction did not change its investment strategy or the structure of its funds.
Aurica's entry into Larrumba is another operation carried out in 2018. This was a significant boost for Larrumba, whose growth rate was hampered by the high rents of its premises.
Aurica also took a 41.5% minority stake in STI Norland through its Aurica III vehicle, endowed with around €200m.