Enterprise Investors nets 12x on AVG Technologies

For the Polish firm the highest return achieved to date

Enterprise Investors, a Central and Eastern European-focused firm, has fully exited its investment in AVG Technologies a software provider, according to a statement.

Financial details of the transaction were undisclosed, but the total return on the company was 12x, according to a source familiar with the matter.

Enterprise Investors declined to comment.

AVG Technologies, which has approximately 187 million active users worldwide, provides desktop, laptop and mobile security software. AVG offers a product portfolio that targets the consumer and small business markets. In 2013, AVG’s revenues were more than $407 million, a 14 percent increase on the $356 million generated in 2012.

Enterprise Investors bought the company in 2005, using its Polish Enterprise Fund V, a €300 million vehicle. Enterprise brought in a new management team and transformed the business from a regional player into a global business, partly through add-on acquisitions.

In October 2009 Enterprise Investors sold a minority stake to US-based TA Associates, before listing it on the New York Stock Exchange, at which point PEF V conducted another partial exit. Since EI’s investment the company reported a 7.5x increase in number of users. The market cap of the company increased 11.5x to $919 million.

Since inception Enterprise has raised eight funds with total capital of more than €2 billion. These funds have invested €1.6 billion in 132 companies across a range of sectors and exited 106 companies with total gross proceeds of almost €2.2 billion, the firm said.