Oasis Group, an Irish records and information management company, is in talks to continue its consolidation play throughout Europe, and has several targets in focus and hope of a deal before year-end, CEO Dennis E Barnedt said.
Oasis is looking at companies operating in European Union (EU) countries including the UK, which has hundreds of small operators, Barnedt said. It is interested in businesses recording turnover between EUR 500,000 and EUR 250m, although a target’s footprint, security, client base and management culture are more important factors when reviewing transactions, he added. Oasis does not have a set acquisition budget, he said. It has a turnover of EUR45m.
The company has a strong M&A pipeline, and its in-house team identifies some 80% of its acquisition candidates. It also receives updates from industry connections and brokers, he said. It welcomes target suggestions from vendors and third parties, he said, adding, “We are nowhere near the point where we have to stop [looking for targets].”
Oasis is still focused on the UK and Ireland and has no plans to look outside the EU at this juncture, he said. It is also interested in the Netherlands and expects to announce a transaction there shortly. Details of the transaction were not given.
Acquisitions will be funded from cash reserves. Oasis also has a senior debt facility for an unspecified amount that has been renegotiated three times in the last two years, he said. In May 2014, Oasis secured a EUR 30m debt facility with Goldman Sachs to be used for acquisitions and to pay down loans, as reported.
Since then Oasis has acquired several companies, including five this year, all based in Ireland or the UK, according to an April 2016 company statement. Recent deals include the purchase of Restore Document Management Ireland for EUR 36m.
PwC will handle tax and financial due diligence matters for larger transactions and Oasis’ internal team will manage smaller deals. UK-based Clarkslegal and Ireland’s LK Shields will be mandated for legal matters, Barnedt said.
There are no plans to seek external financial partners or list the business, he said.
Headquartered in Dublin, the company also has offices in the UK, Belgium and the Netherlands. The company has more than 250 staff, and services more than 4,700 clients in sectors including the financial, legal, healthcare, government and educational.
by Lloyd Vassell
Mergermarket