(News Bulletin 247) – The digital services company holds more than 90% of CS Group’s capital and voting rights. The success of the operation paves the way for the implementation of a squeeze-out on the shares not tendered to the simplified public purchase offer.

Rating withdrawal announcements are accelerating. At the end of last week, Vilmorin’s majority shareholder announced its intention to take the seed company out of the stock market this summer. This time, Sopra Steria announced the success of its simplified public offer (OPAS) on CS Group.

The specialist in consulting and technological services has informed the Autorité des marchés financiers that it holds 93.83% of the capital and at least 94.33% of the voting rights at the end of the OPAS which was open from 6 to April 28 included.

In July 2022, Sopra Steria already held 9.8% of the shares of CS Group before finalizing its acquisition of a majority stake last February and then launching a takeover bid on the 24.68% of the capital and 23.56% of the voting rights. a vote he did not yet hold in March.

The ESN which occupies the top 10 French made these share purchases on the basis of a unit price of 11.50 euros, thus externalizing a generous premium of 80% on the last listed price of July 27, 2022 at 6, 40 euros. The suspension of the listing of CS Group shares is maintained until the implementation of the squeeze-out, Sopra Steria holding more than 90% of the capital and voting rights of its target.

An insatiable hunger for acquisitions

With this acquisition, Sopra Steria intends to strengthen its position in the defense and security sectors with the acquisition of CS Group and its technological solutions with a view to ensuring the security of its customers’ operations and critical missions.

CS Group is not the only listed company to appear on Sopra Steria’s hunting board. The group, which offers consulting and technological services, took over Sodifrance in July 2020 following a similar operation.

The purchase of CS Group will probably not be the last. Moreover, Sopra Steria is accelerating the pace on the acquisition front, since the arrival of Cyril Malargé, a year ago, at the head of the company. Last March, the company launched the offensive on Ordina, its Batavian competitor for a total amount of 518 million euros with a view to strengthening its positions in Benelux.

More departures than arrivals

More generally, CS Group or Sodifrance are not isolated cases. Takeovers have increased in the digital software and services sector in recent years. Highly fragmented in France, this sector is full of many potential targets, in particular small companies that could interest large players in search of a technological brick, a particular know-how or an additional growth lever.

“While the ranks of ESNs include fewer and fewer companies due to takeover bids (nearly 10 in the sector since 2020), and IPOs in the sector are becoming rare, the listing now offers a reduced choice which should benefit to certain discounted files such as Micropole (which is currently paying 2.7x the EBIT expected for 2023) or those offering excellent visibility such as Sword Group and Infotel”, indicated EuroLand Corporate last fall.

CS Group will thus join the recent departures from the Parisian rating since the beginning of 2023. Among the most emblematic departures from the rating, we can mention those of Somfy, Groupe Flo or Manutan this winter.

Opposite, new stock market entries still do not compensate for departures. Only the pioneer in learning to drive online Lepermislibre and more recently the specialist in low-carbon soil Florentaise, have made their debut on the Paris Stock Exchange when My energy broker aims to join the only two IPOs of the year 2023.

A finding that was already visible in 2022. Last year, the Paris Stock Exchange recorded 11 new IPOs (with public offering and not counting SPACs), including 2 on the regulated market of Euronext Paris and 9 on Euronext Growth, the small and mid-cap compartment, against 27 listing exits at the same time, recalls EY in its 2022 edition of its observatory of public offers.