Global private equity firm KKR and TowerBrook Capital Partners are acquiring a minority stake in French cloud service provider OVH for €250 million ($279 million).
In a statement, the firms said the investment will be used to consolidate OVH’s position in Europe and to focus on its expansion plans in the US and Asia.
KKR, one of the world’s largest private equity firms with $131 billion under management, is currently investing its fourth European buyout fund KKR European Fund IV, which raised €3.4 billion in December last year. Among investments from Fund IV are UK-based online rail booking provider Trainline, Lifesciences company LGC, and French call centre operator Webhelp.
New York-based TowerBrook, which takes control stakes in large and middle-market companies in the US and Europe, is investing its $3.5 billion TowerBrook Investors IV.
OVH manages 250,000 servers in 17 data centres in France and Canada, which serve a million customers. In February this year, the firm announced plans to build another 10 data centres in new markets. Laurent Allard, chief executive officer of OVH, said in a statement that the “capital will allow the company to invest €1.5 billion over five years”.
The company turned over approximately €250 million in 2015. The Klaba family, founders of OVH, will retain a majority stake in the company.