Merger of French and Swiss business software firms heralds new unicorn
The deal announced on Wednesday, which is due to complete this month, is backed by British private equity group Bridgepoint, which was previously a major shareholder in LumApps and will hold a majority stake in the new firm.
"Midterm, an IPO or a trade sale are options. With the U.S. and Europe being our core markets, both would be great (IPO venue) candidates," said Beekeeper CEO Cristian Grossmann.
The new firm's headquarters will be in Lyon, the home of LumApps, whose CEO Sebastien Ricard will lead the business. It will have approximately 600 employees worldwide.
Unicorns are unlisted start-ups valued at at least $1 billion. Such firms are comparatively rare in Europe.
LumApps makes software that companies use to run their intranets.
"We are trying to augment or even replace products like Microsoft's SharePoint," said Elie Melois, chief technology officer of LumApps, which is used by the likes of Airbus and luxury goods group LVMH.
While LumApps products are mainly used by office workers, Beekeeper has an app that allows frontline staff to communicate with the rest of the company.
Beekeeper, founded by graduates of ETH Zurich, counts Swiss retailer Coop and Heathrow airport among its clients.
Within six months, the merged company aims to introduce a unified platform.
Current revenue of around $150 million is expected to double to around $300 million by 2030. LumApps already turns a profit, and Beekeeper aims to break even this year. "The combined group will be profitable from day one," Melois said.
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