(News Bulletin 247) – The specialist in the dematerialization of administrative management documents confirms that it is the subject of expressions of interest from the British investment fund Bridgepoint, with a view to a potential acquisition. Esker specifies that there is no certainty that these discussions will be successful.

There is some excitement on the Esker file this August. On Friday, the stock of the specialist in software for dematerializing administrative management documents suddenly gained more than 20% in the afternoon, in reaction to press information about a possible acquisition of the Lyon group.

And it is Bloomberg who is at the origin of this wind of speculation, since according to its information, the British investment fund Bridgepoint has its sights set on Esker, and is considering a public offer on the Lyon group with this in mind.

The stock ended Friday up 9.2%, achieving its best daily performance since December 15, 2023 (+7.04%).

Focus

The Lyon specialist in software for the dematerialization of administrative management documents has therefore come out of the woodwork to comment on these recent rumors. Esker has confirmed that it is in discussions with the Bridgepoint investment fund “concerning a possible offer”, in a press release published this Monday.

The French group explains that “the search for new strategic shareholders” is one of the options considered as part of “its ongoing strategic process”, as is “the continuation of its remarkable journey as a listed company”. Listed on the “Nouveau marché” since 1997 (with an IPO at a price of 120 francs per share), the Esker share – transferred to Alternext, which has since become Euronext Growth – in 2010 – has seen its price multiplied by 34 since this transfer. And even by 53 if we stop at its all-time high recorded at the end of 2021 at more than 360 euros.

Esker adds that the ongoing discussions with Bridgepoint are part of this process, but warns that there is “no certainty” that they “will result in an agreement or a transaction”. The Lyon group is also not committing to “the conditions and timetable” of a potential transaction.

On the Paris Stock Exchange, the stock of the specialist in the dematerialization of administrative management documents rose by 2.7% after this clarification. And since the beginning of the year, it has been doing well, gaining more than 37%, supported by convincing publications.

An activity driven by a change in regulations

In mid-July, Esker had indeed revealed a second quarter turnover growth of 14% to 51.5 million euros, and a sharp increase in order intake, thanks to an acceleration in the deployment of electronic invoicing.

The company is indeed taking advantage of a regulatory change on the generalization of electronic invoices in France. “Electronic invoicing, already mandatory in the context of public procurement since January 1, 2020 for all companies, will gradually be extended to exchanges between companies (and associations) subject to VAT, established in France”, explains francenum.gouv.fr, the portal for the digital transformation of companies.

“Esker is not completely immune to the political crisis in France, but its solid publication shows once again that it remains one of the best growth and quality stocks among French SMEs,” the Stifel research office had appreciated.

This performance, described as remarkable by the financial intermediary, followed the announcement in April of a record turnover of 47.7 million euros in the first quarter.

An operable value

Alongside this publication, management maintained its revenue growth forecasts for 2024. It still expects revenue growth of 12 to 14% (excluding acquisitions and currency effects) for the whole of 2024.

But for Stifel, Esker “will do better than expected”, since the group should still benefit from “a particularly strong dynamic linked to mandatory electronic invoicing”. The consultancy firm had also recalled the speculative dimension of the stock market file, and had suggested that the group “remains a target and is regularly approached by private investors”.

Indeed, the small ETI from Lyon is regularly cited as a prime target for a takeover. The company, which is still owned by its co-founding president, is praised for its profitable growth and the recurrence of its revenues.

The hypothesis of a takeover of Esker is all the more credible given that the concentration movement at work in the software publishing sector has been gaining momentum in recent years.

Especially since listed players are starting to become scarce. At the beginning of the year, the Swedish Pagero fell into the hands of Thomson Reuters, which acquired 53.81% of the capital of the company specializing in electronic invoicing and tax solutions.

As a sign that this business is highly sought after, Thomson Reuters has raised its takeover bid by 25% to ensure it wins the day and thus oust the contenders for the acquisition of the Swedish group.